$IHRT bulls tune in to gains

iHeartMedia (IHRT) is trading to a new 52-Week high today, handing sizable profits to upside option traders.

On Apr. 9, Market Rebellion’s UOA service showed that 4,000 May $20 calls were purchased as part of a bullish spread for $0.70 with shares at $17.97, above the previous open interest of just 176 contracts.

Market Rebellion co-founder Pete Najarian noted the unusual activity that day on CNBC’s “Halftime Report.”

Those calls have sold for as much as $3.00 so far this session, over 4 times their purchase price. The stock rose 27.6% in the same time period, 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.

IHRT was last higher on the day by 15.16% at $22.87, setting new 52-Week highs this session after its earnings report yesterday afternoon.