$SEAS call buyers swim with profits

Bullish option traders are swimming with profits today in SeaWorld Entertainment (SEAS).

On Jul. 19, Market Rebellion’s Unusual Activity Service found that 10,000 August $44 calls were bought for $2.76 to $2.90 against no open interest with shares at $42.36.

Those calls were last marked for $8.90, at least 3 times their purchase prices. The stock rose 24.93% in the same time frame, underscoring how 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.

SEAS was last up by 2.86% at $52.92 in midday trading. The amusement-park operator topped earnings expectations on Aug. 5.