$ROKU option bulls stream large gains

Bullish option traders have scored large gains in Roku (ROKU) calls bought Friday.

On Jun. 18, Market Rebellion’s Unusual Activity Service found that 4,000 Weekly $375 calls, expiring this Friday, were bought for $4.50 to $8.15 above open interest of just 568 contracts with shares at $363.72.

Those calls have traded up to $46.86 this afternoon, more than 5.5 times their purchase prices. The stock rose 15.7% 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 was last up 4.52% to $421.73 today.