Game on for $ATVI option bulls

Bullish option traders are posting big profits in Activision Blizzard (ATVI) today, in positions opened toward the beginning of last week.

On Mar. 30, Market Rebellion’s tracking systems found that 2,500 Weekly $92 calls expiring this Friday were bought for $1.70 to $1.75 with shares at $91.58. This was clearly a new position, as open interest in the strike was only 95 contracts before the trade occurred.

Those calls traded for as much as $5.90 this session, at least 3 times their purchase prices. The stock rose 6.78% 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.

ATVI ended the day at $97.87, up 2.44%.