$UBER call buyers double money

Option traders are booking fast profits on upside positions in Uber (UBER) today.

On Dec. 17, Market Rebellion’s Unusual Activity Service found that 7,900 Weekly $40 calls, expiring next Friday, were bought for $1.34 to $1.43 as part of a bullish spread above the existing open interest of 1,602 contracts with shares at $39.45.

Those calls have traded for as much as $4.00 today, or over 2.5 times their purchase prices. The stock rose 11.25% in the same time frame, illustrating the kind of leverage that can be achieved 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.

UBER was last at $43.90, up 2.05% on the session.