$DIS call prices spike 10-fold

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

On Aug. 3, our Unusual Activity scanners found that 5,250 Weekly $123 calls expiring this Friday, Aug. 7, were bought for $0.68 to $0.78 as part of a bullish spread above open interest of 1,696 contracts with shares at $116.07.

Those calls traded for as much as $7.45 today, more than 10 times their average purchase price. The stock rose 12.29% 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 8.8% at $127.61 today. The entertainment giant reported Q3 earnings after the closing bell yesterday, noting 57.5 million Disney+ subscribers.