$SEAS bulls double their money

Option traders posted substantial profits in SeaWorld Entertainment today.

On March 26, Investitute’s market scanners identified the purchase of 4,250 May $15 calls in one print for $0.75 with shares at $14.39. This was clearly a new position, as open interest in the strike was a mere 10 contracts before the position was established.

Those calls traded for $1.50 today, twice their purchase price. The stock rose 11.7% in the same time frame, illustrating the kind over 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.

SEAS was up 0.91% today to close at $15.60. The amusement-park operator has been the target of persistent takeover speculation.