Large profits for $AAPL option bulls

Option traders are picking big profits on upside positions opened in Apple (AAPL) toward the start of this month.

On Jun. 3, Market Rebellion’s Unusual Activity Service found that 16,500 Weekly $130 calls, expiring this Friday, were bought for $0.73 to $0.78 above open interest of just 8,017 contracts with shares at $123.90.

Those calls traded for as much as $4.21 today, over 5.5 times their purchase prices. The stock rose 8.22% at the same time, underscoring how quickly options can far outperform their underlying shares.

This marks the second winning trade in the name to be posted by Market Rebellion in the past week.

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.

AAPL was up by 1.27% to $133.98 at the close of today’s trade. The company is next estimated to report earnings on Jul. 29 after the close.