$SNAP bulls chalk up another win

Option traders doubled their money on upside positions in Snap (SNAP) today, their second profitable session in a row.

On June 12, Investitute’s market scanners found that 14,500 Weekly $14 calls expiring on July 5 were bought for $0.55 as part of a bullish roll with shares at $13.70. This was clearly a new position, as open interest in the strike was only 334 contracts before the trade occurred.

Those calls sold for $1.05 this morning, about twice their purchase price. The stock rose 7.52% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name posted on Investitute in as many days.

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.

SNAP hit a session high of $14.85 just after the opening bell but pulled back to trade at $14.53 this afternoon, down 2.23% on the day. BTIG raised its price target on the social network to $20 from $15 yesterday morning.