$ROKU bulls score at highs

Bullish option traders have scored big profits in Roku (ROKU) calls bought this week.

On Dec. 8, Our unusual tracking systems found that 2,500 Weekly $310 calls expiring today were purchased for $3.30 to $6.10 above open interest of 2,112 contracts with shares at $305.66.

Those calls traded up to $20.90 today, more than 4 times their purchase prices. The stock rose 8.45% at the same time, 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.

ROKU ended up 2.76% to $330.87 today, a point below its new 52-Week high made earlier at $331.87. The streaming app’s price target was raised at Citi Wednesday morning, to $375 from $220.