Fast profits for $AMD bulls

Bullish option traders who opened upside call positions in Advanced Micro Devices (AMD) just this morning are making big gains today as shares climb.

Just this morning, Market Rebellion’s Unusual Activity Service found that 7,800 June $81 calls, expiring tomorrow, were bought for $0.42 to $0.92 above open interest of 6,548 contracts with shares at $81.58.

Those calls traded have traded for as much as $2.70 so far this session, about 3 times their purchase prices. The stock rose 2.46% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

AMD was last up by 3.8% to $83.16 on the day.