Option bulls score in $FB

Option traders are posting large gains today on bullish positions opened in Facebook (FB) a couple of weeks ago.

On Apr. 14, Market Rebellion’s UOA service found that 7,570 Weekly $310 calls expiring this Friday, Apr. 30, were bought for $8.83 to $8.84 as part of a bullish roll with shares at $304.71. The volume was well above the contract’s previous open interest of 3,704 which indicated that this was a new position.

Those calls have traded up to $21.85 today, at least double their purchase prices. The stock rose 8.76% at the same time, showing how quickly options can far outperform their underlying shares.

This marks the second winning trade in the name to be posted on Market Rebellion this month.

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.

FB was last up 5.4% at $323.68 in early afternoon trade, setting new highs this session after topping earnings estimates after the closing bell yesterday.