Bulls triple their money in GoPro

Upside option positions turned quick profits in GoPro today as shares continued to rally after strong quartelry results last week.

Just yesterday, Investitute’s proprietary programs found that 5,000 Weekly $10 calls expiring this Friday were purchased for $0.14 to $0.44 with shares at $10.22. This was clearly fresh buying, as open interest in the strike was only 304 contracts before the activity appeared.

Today those calls traded up to $0.81, nearly tripling in value on average. The stock was up only 5.6 percent at the same time, illustrating the kind of leverage that can be achieved through options.

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.

GPRO rose 3.54 percent to $10.52 today. The wearable-camera maker gapped up from the $8 last Friday morning after announcing earnings and outlook that exceeded expectations.