Traders turn quick profits in $FB

Facebook rallied as CEO Mark Zuckerberg testified before Congress today, returning sizable gains on bullish options bought just one session earlier.

Investitute’s market scanners showed that 1,500 Weekly $162.50 calls expiring on April 27 were purchased for $4.77 yesterday. The position was opened as part of a bullish spread with shares at $157.80.

Those calls traded as high as $8.51 today, nearly doubling in price. The stock rose 5.2% at the same time, reflecting the kind of leverage that can be achieved quickly with options.

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.

FB jumped 4.5% to $165.04 today. Investitute co-founders Jon and Pete Najarian discussed the stock’s performance on CNBC’s “Halftime Report” this afternoon before Zuckerberg’s appearance.