Another jackpot in Scientific Games

Scientific Games is en fuego, and investors are cashing in on upside option trades for the second session in a row.

Just yesterday, Investitute posted a winning position from February, which was rolled into another bullish trade as 6,000 January $22 calls sold for $11.25 while 11,500 January $35 calls were purchased for $3.40 with shares at $32.55.

Today those January $35 calls traded as high as $7.60, more than doubling in value just 24 hours later. The stock was up 19.8 percent at the same time, an impressive move but nowhere near that of the options. Investitute co-founder Pete Najarian, who cited the initial gains yesterday on CNBC’s “Halftime Report,” updated the trade again on today’s program.

Long calls lock in the price where the 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.

SGMS surged 11.27 percent to $38 today, following a 27.19 percent increase yesterday. The maker of casino technology beat revenue expectations Monday morning.