$DIS call prices double in a week

It took just one week for option traders to turn gains on upside positions in Disney (DIS).

On Jul. 7, our Unusual Activity scanners found that 3,700 July $117 calls expiring this Friday were bought for $1.21 to $2.03 above open interest of 1,972 contracts with shares at $114.63.

Those calls traded for as much as $3.30 today, more than double their average purchase price. The stock rose 3.89% 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 2.12% at $118.66. The entertainment giant was initiated with a Buy at Goldman Sachs with a $137 price target yesterday, and is scheduled to report earnings after the closing bell on Aug. 4.