$IGT option bulls dealt an 8-fold winner

International Gaming Technology (IGT) is dealing a winning hand to upside option traders today.

On Aug. 19, Market Rebellion’s Unusual Activity Service found that 10,000 November $19 calls were bought for $1.50 above the existing open interest of 159 with shares at $17.73.

Those calls have sold for $12.30 today, over 8 times their purchase price. The stock rose 76.65% in the same time frame, an impressive gain but nowhere near that of its options.

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.

IGT was up 8.14% to $31.89 at the close today.