$JNPR bulls turn fast gains

Option traders turned fast profits today on upside positions opened in Juniper Networks (JNPR) only two sessions earlier.

On Jan. 26, Market Rebellion’s Unusual Activity Service found that 8,000 Weekly $32 calls, expiring today, were bought for $0.64 to $0.85 above the existing open interest of 52 contracts with shares at $30.98.

Those calls traded up to $1.54 today, about 2 times their purchase prices. The stock rallied 8.33% in the same time period, a large move but 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.

JNPR closed up by 6.93% to $33.63 this session.