$MSFT Call Buyers Score

Option traders are seeing big profits in Microsoft Corp (MSFT) today.

On Sep. 24, Market Rebellion’s Unusual Option Activity Service found that 14,875 30October 525 calls were bought for $9.23 with shares at $494.33. This was clearly fresh buying, as open interest in the contract was just 208 before the activity occurred.

Those calls have traded for as much as $19.00 this session, a 105.85% return, while the stock rose 5.1% at the same time, 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.

MSFT was last trading at $517.79, up 1.73% on the day.