$ROKU option bulls streaming more gains

Bullish option traders are streaming more large gains in Roku (ROKU) calls bought Friday.

On Jun. 18, Market Rebellion’s Unusual Activity Service found that 6,000 Weekly $400 calls, expiring this Friday, were bought for $1.90 to $4.45 above open interest of just 1,181 contracts with shares at $363.72.

Those calls have traded up to $31.79 this morning, more than 7 times their purchase prices. The stock rose 18.1% at the same time, illustrating the kind of leverage that can be achieved with options.

This marks the second winning trade in the name to be posted on Market Rebellion in as many sessions.

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 1.8% to $429.31 today.