$LVS bulls triple their money

Option traders are racking up winnings in Las Vegas Sands (LVS) today for the second time in less than a week.

On Sept. 17, our Unusual Activity Service detected the purchase of 13,000 January $60 calls bought in one print for $3.20 above open interest of 1,830 contracts with shares at $57.92. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls have traded for as much as $9.75 so far today, more than 3 times their purchase price. The stock rose 20.22% in the same time period, underscoring how options can far outperform their underlying shares.

It is the second winning trade in the name posted on Market Rebellion since Dec. 18.

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 is up 1.53% to $69.58 this afternoon. The company has rallied sharply along with other casino operators since China announced plans recently to make gambling capital Macau a major financial center.