$SABR bulls score

Option traders are logging big gains on upside positions in Sabre (SABR) today on positions opened last month.

Market Rebellion’s Unusual Option Activity Service flagged bullish option activity on two separate occasions in calls that expire today.

–On Feb. 2, 2,600 March $12 calls were purchased for $1.17 to $1.33 above open interest of 1,307 contracts with shares at $11.80.
–On Feb. 19, 8,400 March $14 calls were purchased for $0.81 to $1.10 above open interest of 2,524 contracts with shares at $13.54.

Those calls have respectively traded for as much as $3.95 and $2.18 today, about triple and double their purchase prices. The stock rose by as much as 36.69% in the same time frame, illustrating how quickly options can far outperform their underlying shares.

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.

SABR is down 0.093% at $16.04 in afternoon trade today. The travel technology company’s shares have been on the rise on as the travel industry recovers.