$SONO calls turn up volume

Option traders doubled their money on bullish positions in Sonos (SONO) today.

On Oct. 29, Market Rebellion’s tracking systems detected the purchase of 2,450 December $15 calls for $0.52 to $0.70 with shares at $13.35. Volume was above the strike’s previous open interest, indicating that this was fresh buying.

Those calls traded for as much as $1.21 today, twice their average purchase price. The stock rose 12.66% 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 Market Rebellion since Nov. 7.

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.

SONO reached a session high of $15.15 this morning but have pulled back to $14.96 this afternoon, off 0.3% on the day. The audio-systems manufacturer has rallied with buyout speculation in recent days.