$VXX call prices triple overnight

Just 24 hours after opening their positions, option traders have turned big gains in the iPath S&P 500 VIX Short-Term Futures Note.

Just yesterday, Investitute’s tracking systems found that 8,000 Weekly $53 calls expiring on April 13 were purchased for $0.67 as part of a bullish spread with shares at $47.73. This was clearly a new position, as open interest in the strike was only 1,137 contracts before that session began.

Those calls traded up to $1.98 today, 3 times their purchase price. The stock rose 8.7% 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.

VXX jumped 6.11% to $49.76. The exchange-traded note, which reflects volatility in the S&P 500, usually trades inversely to equities.