$SYMC calls surge sixfold in days

It took just two sessions for bullish option traders to rack up huge gains in Symantec.

Late on Nov. 2, Investitute’s proprietary programs found that 4,000 Weekly $19.50 calls expiring this Friday were purchased for $0.65 as part of a bullish spread with shares at $19.79. This was clearly a new position, as open interest in the strike was only 162 contracts before that session began.

Those calls traded for as much as $3.90 this morning, 6 times their purchase price. The stock rose 18.19% in the same time frame, showing how quickly options can far outpace gains in their underlying shares.

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.

SYMC spiked higher by 12.59% to close at $22.54 this afternoon. The cybersecurity firm rallied today after Reuters reported that private-equity firm Thoma Bravo has indicated an interest in acquiring the company.