$DLTR call prices turn 6-fold

Bullish option traders are ringing up big gains in Dollar Tree (DLTR) today.

On Nov. 9, Market Rebellion’s Unusual Activity Service found that 2,500 December $115 calls were bought for $3.85 as part of a bullish spread above the existing open interest of 975 contracts with shares at $110.94.

Those calls traded for as much as $26.01 this session, more than 6.5 times their purchase price. The stock rose 26.81% in the same time period, illustrating the kind of leverage that can be achieved with options.

This marks the second winning trade in the name to be posted on Market Rebellion in recent weeks.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

DLTR was last trading at $147.98, up 11.63% on the session.