Calls triple overnight in $VIAV

Option traders are logging exponential gains today on bullish positions opened in Viavi Solutions (VIAV) only one session earlier.

Just yesterday, our tracking systems detected the purchase of 5,300 October $15 calls for $0.20 to $0.32 above open interest of 479 contracts with shares at $14.11. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded up to $0.94 early today, more than 3.5 times their average purchase price. The stock rose 7.51% at the same time, showing how quickly options can far outperform 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.

VIAV hit a 52-week high of $15.17 right after the opening bell but pulled back with the broader market to trade at $14.62 this morning, off 1.55% on the session. The networking-equipment company raised its outlook and announced a $200 million stock buyback before the market opened.