$SNAP calls double overnight

It took only one night for option traders to post substantial profits in Snap Inc.

Yesterday, Investitute’s tracking systems detected the purchase of 1,512 01June $11.50 calls bought for $0.11 and $0.12 with shares at $10.64. This was clearly fresh buying, as volume was well above the strike’s open interest of 677 contracts.

Those calls traded for $0.37 this afternoon, more than 3 times their purchase prices. The stock rose 10.9% at the same time, showing the kind of leverage that can be achieved quickly with options.

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 rose 3.92% to close at 11.39 today. The social-media company’s shares traded higher after Citron put a $17 price target on the stock.