$IMMR bulls score overnight

Bullish option traders are logging fast profits in Immersion Corporation (IMMR) calls today.

Yesterday on Dec. 28, Market Rebellion’s Unusual Activity Service detected the purchase of 2,000 February $12.50 calls for $0.49 to $0.60 as part of a bullish roll with shares at $10.84. This was clearly fresh buying, as volume was well above the strike’s existing open interest of 1,158 contracts.

Those calls have traded up to $2.20 so far today, at least 3.5 times their purchase prices. The stock rose 18.82% at the same time, showing how quickly options can far outpace gains in 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.

IMMR is up 25.69% to $11.84 currently. The touch feedback technology company’s price target was raised to $15 from $13 this morning at Colliers.