$QSR bulls continue to win

Bullish option traders posted big profits in Restaurant Brands International today, on longer term positions opened at the end of last August.

On Aug. 31, Investitute’s tracking systems detected the purchase of 3,000 18April $60 calls for $2.90 to $3.00 with shares at $57.76. These were clearly new positions, as open interest in the strike was only 55 contracts before the trade occurred.

Those calls traded for $6.00 today, double their purchase prices. The stock rose 13.92% in the same time frame, illustrating the kind of leverage that can be achieved with 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.

QSR was up 1.02% to $65.60 today. The dividend-paying Canadian multinational group of fast food chains’ stock has risen as investors search for yield with the U.S. 10-Year closing at 2.389% today.