$SNE bulls double their money

Option traders have scored big in Sony’s run to its highest level in 17 years.

On Aug. 28, Investitute’s tracking systems detected the purchase of 4,000 October $55 calls for $2.20 as part of a bullish roll with shares at $55.48. Volume was well above the strike’s open interest of 3,136 contracts, indicating that this was a new position.

Those calls rose to $6.10 today, more than 2.5 times their purchase price. The stock rose 9.79% in the same time period, showng how options can far outperform their underlying shares. It was the second winning trade in SNE posted on Investitute in the last two weeks.

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.

SNE climbed to $61.02 this morning–its best level since 2001–before pulling back to close at $60.62, off 0.05% on the session. The Japanese conglomerate, which has been chopping higher since reporting earnings at the end of July, was upgraded by Credit Suisse to “outperform” on Sept. 10.