$ROKU call prices surge 5-fold

Patient option traders scored exponential gains today on bullish positions opened in Roku last November.

Back on Nov. 29, Investitute’s market scanners found that 12,500 18April $60 calls were bought for $1.88 to $2.02 as part of a bullish roll with shares at $40.46. This was clearly a new position, as volume was far above the strike’s previous open interest of 1,909 contracts.

Those calls sold for $10.30 this afternoon, more than 5 times their purchase prices. The stock soared 69.85% in the same time period, a huge move but nowhere near that of its options on a relative basis.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

ROKU jumped 4.68% to $66.90 today. Apple (AAPL) announced today that content from its new video-streaming service will be available on Roku devices.