$ROKU bulls binge on more profits

It took just one session for bullish option traders to score big profits in Roku (ROKU) calls bought Friday morning.

On Jul. 10, Our unusual tracking systems found that 5,000 July $155 calls expiring this Friday were purchased for $1.99 to $8.25 above open interest of 2,126 contracts with shares at $156.21.

Those calls traded up to $14.25 today, more than double their purchase prices. The stock rose 6.36% at the same time, illustrating the kind of leverage that can be achieved with options.

This marks the third winning trade in the name posted on Market Rebellion this month.

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.

ROKU ended down 2.61% to $149.06 today after trading as high as $166.18 earlier in the session. The streaming app’s price target was raised at Benchmark this morning to $180 from $153.