$FEYE bulls secure quick gains

It took less than three sessions for option traders to turn fast gains on upside positions in FireEye (FEYE).

On Jun. 9, Market Rebellion’s Unusual Activity Service identified the purchase of 3,100 Weekly $20.50 calls, expiring today, for $0.24 to $0.48 with shares at $20.30. This was clearly fresh buying, as volume was well above the strike’s previous open interest of 684 contracts.

Those calls traded for as much as $0.95 this session, more than 2 times their purchase prices. The stock rose 5.67% in the same time frame, 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.

FEYE was last up 1.63% to $21.50 in late-day trade. The cybersecurity company held its monthly threat briefing today, and is next estimated to report earnings on Jul. 27.