$VRSN call prices triple overnight

Option traders posted large gains today on bullish positions opened in VeriSign only 24 hours earlier.

Just yesterday, Investitute’s tracking systems detected the purchase of 4,100 April $125 calls for $2.08 to $3.50 with shares at $122.88. Volume was well above the strike’s open interest of 2,043 contracts, indicating that this was fresh buying.

Those calls traded as high as $6.80 today, more than 3 times their original purchase price. The stock rose 2.9% at the same time, showing how quickly options can far outpace gains in 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.

VRSN was up 1.87% to close at $125.31 today. The Internet domain-name registry and cybersecurity service has been working its way higher since reporting earnings early last month.