Happy returns for Intuit bulls

Traders turned huge profits on positions opened just one day earlier in Intuit.

In late trading yesterday, just minutes before the company reported quarterly results, Investitute’s tracking systems detected the purchase of 2,100 June $135 calls for $0.80 to $1.32 with shares at $129.10. These were clearly new positions, as open interest in the strike was only 142 contracts before that session began.

Those calls sold for $6.05 today–a gain that ranged from 350 percent to 650 percent in 24 hours, depending on the purchase price. The stock rose about 8.53 percent in the same time, illustrating how far options can outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

INTU was up 6.72 percent today to close at $137.83. The technology company, known for its TurboTax accounting software, beat earnings and revenue estimates after the market closed yesterday.