$SNAP call prices double in hours

Bullish option traders are cashing in fast profits on Snap (SNAP) calls today.

This morning on May 25, Market Rebellion’s Unusual Activity programs detected the the purchase 27,000 Weekly $13.50 calls, expiring this Friday, for $0.51 to $0.85 with shares at $12.91. The volume was well above the contract’s previous open interest of 4,691 which indicated that this was a new position.

Those calls have traded for as much as $1.30 today, about double their average purchase price. The stock rose 12.7% in the same time frame, a large move but nowhere near that of its options on a relative basis.

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.

SNAP was last up by 11.18% at $14.22 today.