$DIS bulls triple their money

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

On Nov. 6, our activity scanners found that 6,800 Weekly $135 calls expiring on Nov. 135 were bought for $1.85 to $2.05 above open interest of 516 contracts with shares at $131.26. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $6.25 today, more than 3 times their purchase prices. The stock rose 6.65% 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 is up 3.09% to $137.06 this afternoon. The entertainment giant beat earnings and revenue estimates after the market closed yesterday.