$BMY call buyers double their money

Bullish option positions are scoring big gains as Bristol-Myers Squibb reaches new highs.

On Aug. 31, Investitute’s market scanners found that 3,000 Weekly $58 calls that expire this Friday were purchased in one print for $2.60. Open interest in the strike was only 154 contracts before the trade occurred, showing that it was a new position.

Today those calls sold for $5.32, more than double their purchase price. The stock rose 5.6 percent in the same time period, illustrating the kind of leverage that can be achieved through 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.

BMY ended today’s session off 0.41 percent to $62.93. After trading sideways for much of the year, the drug maker broke out to 52-week highs this month with positive results in its kidney-cancer treatments.