$INTC call prices skyrocket 9-fold

Intel has surged on strong quarterly results, handing enormous gains to bullish option traders.

Investitute’s tracking systems detected the purchase of 20,000 February $41 calls each on Oct. 10 and 13 for $1.13 and $1.15 respectively. The stock was at $39.36 and $39.48 when those two trades, totaling 40,000 contracts, took place.

Those calls traded for $10.60 today, more than 9 times their purchase prices. The stock rose 28.2% in the same time period, showing how options can far outperform 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.

INTC hit a 52-week high of $50.85 just before noon ET but pulled back to close at $49.98, off 0.2% on the day. The chip giant beat rallied 10% last Friday after blowing away earnings estimates, its largest single-session gain since 2000.