$I call buyers double their money

Bullish option traders racked up stratospheric profits in Intelsat today.

On July 12, Investitute’s proprietary programs flagged the purchase of 3,194 December $20 calls in one print for $6.20 as part of a bullish roll with shares at $19.38. This was clearly a new position, as volume was above the strike’s existing open interest of 2,641 contracts.

Those calls traded sold for $17.03 today, more than 2.5 times their purchase price. The stock surged 87.41% in the same time period, a huge move but still nowhere near that of its options on a relative basis.

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.

I spiked higher by 12.76% to $36.58 today. The satellite operator rallied after announcing two new developments on in-flight broadband services and a strategic investment in Africa Mobile Networks.