$F bulls triple money overnight

Option traders turned quick profits in Ford today thanks to strong quarterly numbers.

Just yesterday, Investitute’s market scanners found that 5,000 Weekly $11.50 calls expiring on May 4 were purchased in one block for $0.06 with shares at $11. This was clearly fresh buying, as volume was above the strike’s open interest of 4,737 contracts.

Those calls traded up to $0.19 today, more than 3 times their purchase price. The stock rose 4.8% at the same time, showing how quickly options can far outpace gains in their underlying shares. It was the second winning trade in the name posted on Investitute this month.

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.

F was up 2.88% to $11.43 today. The auto maker beat earnings and revenue expectations after the market closed yesterday.