$TWTR bulls double their money

A high flying bet on Twitter opened just two weeks ago is already delivering returns as shares hit four-month highs.

On Nov. 28, Investitute’s tracking systems detected the purchase of 40,010 February $37 calls, as part of a bullish roll, for $1.63 to $1.72 with shares at $32.49. This was clearly a new position, as open interest in the strike was a mere 33 contracts before the trade occurred.

Those calls traded for $3.90 this morning, more than double their purchase prices. The stock rose 13.76% in the same time frame, quite a move, but nothing like that of its options on a relative basis.

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.

TWTR spiked higher today to close up 5.22% at $36.25. The social-networking company has risen off recent lows, helped in part by an iniation at Guggenheim with a $39 price target.