$MSFT option bulls double money overnight

Option bulls are being rewarded today with big profits on upside positions in Microsoft (MSFT).

Yesterday on Mar. 28, Market Rebellion’s Unusual Activity Service found that 13,000 Weekly $310 calls, expiring this Friday, were bought for $1.40 to $2.84 above the existing open interest of 5,512 with shares at $307.86.

Those calls have traded for as much as $6.25 during this session, at least 2 times their purchase prices. The stock rose 2.4% in the same time frame, showing how options can far outperform their underlying shares on a relative basis.

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 at $315.10, up 1.42% on the session in afternoon trade.