Option bulls triple money in $HOOD

Option traders are making quick gains on upside positions in indie Robinhood Markets Inc (HOOD) today.

Just yesterday on Sep. 21, Market Rebellion’s Unusual Activity Service found that 2,300 Weekly $43 calls, expiring this Friday,, Sep. 24, were bought for $0.20 to $0.70 above the existing open interest of 2,049 contracts with shares at $42.47.

Those calls traded for as much as $2.65 so far today, or over 3 times their purchase prices. The stock rose 7.44% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

HOOD was last at $45.18, up 6.83% on the session.