$WDC call prices double

Bullish option traders are racking up big gains in Western Digital (WDC) this session.

On Mar. 16, Market Rebellion’s Unusual Activity Service found that 3,200 May $47.50 calls were bought for $4.30 to $4.60 above the existing open interest of 1,001 contracts with shares at $47.57.

Those calls were last marked for $12.45 over 2.5 times their purchase prices. The stock rose 25.58% 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.

WDC was last trading at $59.74 in midday trade, down 2.37% on the session.