$ROKU bulls triple money

Option traders racked up huge profits in Roku today on upside positions opened only one session earlier.

Just yesterday, Investitute’s market scanners found that 2,900 Weekly $57 calls expiring on May 3 were purchased for $2.15 to $2.50 with shares at $57.54. This was clearly fresh buying, as open interest in the strike was only 357 contracts before the activity appeared.

Those calls traded for as much as $6.51 today, 3 times their purchase price. The stock rose 9.42% at the same time, illustrating the kind of leverage that can be achieved quickly 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.

ROKU jumped 5.72% to $61.53. Susquehanna initiated coverage of the video-streaming company last night with a “positive” rating and an $80 price target. Quarterly results are estimated for May 8 after the market closes.