$DIS bulls double their money

It took just two sessions for option traders to turn big gains on upside positions in Disney (DIS).

On May 18, our Unusual Activity scanners found that 3,800 Weekly $120 calls expiring on May 22 were bought for $0.40 to $0.95 above open interest of 1,790 contracts with shares at $116.48.

Those calls traded for as much as $2.35 today, at least double their purchase prices. The stock rose 3.66% in the same time frame, showing how quickly options can far outperform their underling 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.

DIS closed up 5% at $119.91 just off its afternoon high of $120.87. The entertainment giant’s shares rose on optimism that it would present reopening plans for its Florida parks tomorrow, news which was later dismissed by the company.