$GLD bulls double money

Option traders are scoring big gains on upside positions in the SPDR Gold Trust (GLD) today.

On Jun. 20 of last year, our Unusual Activity Service detected the purchase of 13,530 January $140 calls in one print for $3.15 as part of a bullish roll with shares at $130.43. This was clearly a new position, as open interest in the strike was only 12,615 contracts before that session began.

Those calls have changed hands for as much as $8.52 this morning, more than 2.5 times their purchase price. The stock rose 13.81% in the same time period, underscoring how 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.

GLD is up 0.97% to $147.28 in morning trading. The exchange-traded fund, which tracks the price of bullion, has rallied as investors have return to precious metals as a so-called safe haven.