$DELL bulls double money

Option traders have made huge profits on bullish positions in Dell Technologies (DELL).

On Mar. 22, Market Rebellion’s Unusual Options Activity service flagged the purchase of 2,000 April $92.50 calls for $0.92 with shares at $87.83. This was fresh buying as the volume was well over the previous open interest of 301 contracts.

Those calls traded for as much as $2.10 today, more than 2 times their purchase price. The stock rose 7.02% in the same time frame, showing how options can far outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

DELL was last up 1.01% to $93.82 in afternoon trade. Morgan Stanley raised its price target on the shares to $107 from $98 yesterday.