$GOOG returns major gains on calls

Option traders tripled their money in bullish positions on Alphabet today.

On Aug. 23, Investitute’s market scanners identified the purchase of 4,000 November $935 calls bought for $32.70 as part of a bullish roll with shares at $923.20. There was no open interest in the strike before the trade occurred, showing that it was a new position.

Those calls sold for $107.10 this morning, more than 3 times their purchase price. The stock rose 12.8 percent in the same time frame, exemplifying the type of leverage that can be obtained with options. Investitute co-found Pete Najarian cited even more bullish option activity on CNBC’s “Halftime Report” this afternoon.

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.

GOOG jumped 4.8 percent today to close at $1,019.27 after spiking to an all-time high of 1,048.39 in the morning. The search giant surpassed earnings and revenue forecasts after the market closed yesterday.