$CZR call prices triple overnight

Option traders are already collecting their winnings from bullish bets placed on Caesars Entertainment only one session earlier.

Just yesterday, Investitute’s proprietary programs flagged the purchase of 20,000 18April $10 calls for $0.07 as part of a bullish spread with shares at $8.91. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls rose to $0.21 this morning, 3 times their purchase price. The stock was up 3.03% at the same time, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

CZR closed at $9.19 today, up 1.21%. The company, which has been the subject of merger speculation, rallied along with other casino operators this week after strong numbers from Macau.