$DKNG call prices quadruple

Bullish option traders are scoring big gains on upside wagers in DraftKings (DKNG).

On Aug. 24, Market Rebellion’s Unusual Activity Service found that 7,500 Weekly $57 calls, expiring this Friday, Sep. 10, were bought for $1.04 to $1.49 above the existing open interest of 396 contracts with shares at $54.73.

Those calls have traded for as much as $6.35 today, more than 4 times their purchase prices. The stock rose 15.73% in the same time frame, illustrating how quickly 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.

DKNG was last up on the session up 0.73% to $64.04.