$STX bulls post astronomic gains

Traders cashed in gigantic profits in Seagate Technology today.

On Nov. 20, Investitute’s market scanners detected the purchase of 2,000 January $43 calls for $0.43 to $0.47 with shares at $39.73. These were clearly new positions, as volume was well above the strike’s open interest of 967 contracts.

Those calls sold for $6.40 this morning, more than 14 times their original purchase price. The stock rallied 23.6 percent in the same time period, a large move but one that still pales

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.

STX jumped 7.13 percent to $46 today. The digital-storage company surged after a blog called ValueStreet Research said that “Seagate may own over 4% of Ripple,” one of the most popular cryptocurrencies, according to Bloomberg.