$ROKU bulls stream profits

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

Yesterday on Jul. 1, Our unusual tracking systems found that 4,000 Weekly $130 calls expiring next Friday were purchased for $1.50 to $2.10 above open interest of 1,092 contracts with shares at $118.90.

Those calls have traded up to $6.70 so far today, more than triple their purchase prices. The stock rose 11.4% 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 is up 0.72% to $129.31 in afternoon trading. Peloton (PTON) announced yesterday that it would be rolling out an app on the video-streaming company’s platform.