$GLW turns big gains overnight

Option traders more than tripled their money today on bullish positions opened in Corning only one session earlier.

Just yesterday, Investitute’s tracking systems detected the purchase of 5,000 August $29.50 in one print for $1.08 with shares at $29.93. This was clearly a new position, as open interest in the strike was a mere 27 contracts before that session began.

Those calls traded for $3.94 just before the closing bell today, more than 3.5 times their purchase price. The stock rose 11.23% at the same time, showing how quickly options can far outpace gains in their underlying shares. Investitute co-founder Jon Najarian flagged the unusual activity at the time it occurred and updated the trade on CNBC’s “Halftime Report” today.

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.

GLW spiked higher by 11.33% to $33.21 today. The LCD manufacturer blew past earnings and revenue expectations this morning.