$FB bulls log a quick win

Option traders are posting large profits today on bullish positions opened in Facebook (FB) just this morning.

Just this morning, Market Rebellion’s Unusual Activity scanners found that 9,000 Weekly $220 calls expiring this Friday, May 22, were bought for $0.60 to $1.44 with shares at $215.55. The volume was well above the contract’s previous open interest of 6,258 which indicated that this was a new position.

Those calls traded up to $3.60 today, at least double their purchase prices. The stock rose 2.16% at the same time, showing 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.

FB was up 1.73% to close at $216.88 this afternoon after pulling back from session highs at $220.49. The social media and technology company announced today that it was working more closely with partners such as Shopify (SHOP).