$UBER call buyers score intraday

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

This morning on Jan. 10, Market Rebellion’s Unusual Option Activity Service found that 8,300 Weekly $62 calls, expiring Jan. 12, were bought for $0.27 to $0.38 with shares at $60.41. This was clearly fresh buying, as open interest in the contract was just 4,526 before the activity appeared.

Those calls have traded for as much as $1.06 today, a 178.95% return, while the stock rose 3.51% in the same time period, underscoring how options can far outperform their underlying shares.

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 $62.52, up 3.67% on the session.