Option bulls score fast profits in $AAPL

Option traders are scoring big profits on upside positions opened in Apple (AAPL) toward the end of last week.

On Aug. 12, Market Rebellion’s Unusual Activity Service found that 20,000 August $149 calls, expiring this Friday, were bought for $0.56 to $1.49 above the existing open interest of 10,805 with shares at $146.11.

Those calls traded for as much as $2.75 today, over 5.5 times their purchase prices. The stock rose 3.39% at the same time, underscoring how quickly 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.

AAPL was up by 1.35% to $151.12 at the close of today’s trade, setting a new high of $151.13 earlier.