$LVS bulls double their money

Option traders are racking up winnings in Las Vegas Sands (LVS) today after a positive earnings reaction.

On Apr. 21, our Unusual Activity Service detected the purchase of 13,500 Weekly $41 calls expiring tomorrow, Apr. 24,  for $2.24 to $2.74 above open interest of 8 contracts with shares at $40.72.

Those calls traded for as much as $5.55 today, more than double their purchase prices. The stock rose 9.77% in the same time period, underscoring 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.

LVS ended the session up by 12.15% to $45.96 this afternoon. The company reported weaker than expected results in its Q1 earnings report after the closing bell yesterday but comments from management regarding pent up demand in Macau and Singapore provided hope for a sharp bounce back when closures are lifted.