$NLOK call prices quadruple overnight

Bullish option traders are ringing up big profits today in NortonLifeLock (NLOK).

Just yesterday, on Aug. 10, Market Rebellion’s Unusual Activity programs detected the the purchase 7,400 August $24 calls for $0.35 to $0.60 with shares at $23.88. Open interest in the contract before the trade occurred was just 238, showing that this was a new position.

Those calls traded for $2.47 this morning, more than 4 times their purchase prices. The stock rose 10.59% in the same time frame, a large move but nowhere near that of its options.

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.

NLOK was last trading for $26.23, up 8.61% on the session. The cybersecurity software company and Avast (AVASF) have agreed to merge in an $8.6 billion deal.