$LYV option bulls score at highs

Option traders are scoring big profits on upside positions opened in Live Nation Entertainment, Inc. (LYV) almost three months ago.

On Jul. 15, Market Rebellion’s Unusual Activity Service found that 8,000 October $82.50 calls, expiring next Friday, were bought for $5.10 to $5.50 as part of a bullish roll above the existing open interest of 145 contracts with shares at $79.44.

Those calls traded up to $17.60 this session, about triple their purchase prices. The stock rose 26.1% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

LYV was higher this session by 1.9% to close at $99.83.