Last-minute trades score in $GME

Bullish option positions posted quick gains today after GameStop reported surprisingly strong quarterly numbers.

Late yesterday afternoon, Investitute’s proprietary programs showed that 4,000 Weekly $17 calls expiring this Friday were purchased for $0.60 to $0.89 with shares at $16.51. Volume was above the strike’s open interest of 3,344 contracts, indicating that this was fresh buying.

Today those calls traded up to $1.68, nearly triple their original purchase price. The stock was up 13.1 percent at the same time, illustrating the kind of leverage that can be achieved through options.

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.

GME rose 3.83 percent to $17.37 today. The game retailer forecast robust holiday sales after surpassed earnings and revenue expectations last night.