Traders dial for upside in $VOD

Vodafone options yielded major profits before they expired this afternoon.

On Oct. 6, Investitute’s proprietary programs showed that 4,000 Weekly $28.50 calls expiring today were purchased for $0.42 to $0.50 with shares at $28.07. These were new positions, as there was no open interest in the strike before that session began.

Those calls were marked at $2.05 as they expired today, nearly 5 times their original purchase price. The stock rose 9 percent in the same time period, underscoring the kind of leverage that can be achieved through options.

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.

VOD was up 0.63 percent today to close at $30.59. The U.K. telecom carrier gapped higher after beating quarterly estimates on Nov. 14 and is trading near 52-week highs.