$FB call buyers score fast money

Option traders are posting large gains today on bullish positions opened in Facebook (FB) on Monday.

On Aug. 30, Market Rebellion’s Unusual Activity programs detected the purchase 12,000 Weekly $380 calls, expiring this Friday, Sep. 3, for $0.77  to $1.90 with shares at $370.76. The volume was well above the contract’s previous open interest of 6,783 which indicated that this was a new position.

Those calls traded up to $5.16 today, at least 2.5 times their purchase prices. The stock rose 3.64% 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 0.7% to close at $382.05, setting new highs this session.