Option bulls order a double in $BUD

Bullish option traders are toasting large gains in Anheuser Busch Inbev (BUD) today.

On Sep. 16, Market Rebellion’s Unusual Activity Service found that 7,500 December $65 calls were bought for $0.89 to $1.01 above the existing open interest of 3,571 with shares at $57.41.

Those calls have traded up to $2.38 this session, more than 2 times their purchase prices. The stock rose 11.51% in the same time frame, 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.

BUD is up 9.13% to $62.40 in afternoon trading.