$WMT bulls pick up quick gains

Option traders are picking up quick gains today on upside positions opened in Walmart (WMT) just yesterday.

On Apr. 6, Market Rebellion’s Unusual Activity Service found that 3,000 Weekly $157.50 calls, expiring tomorrow, Apr. 8, were bought for $0.24 to $0.33 above the existing open interest of 1,769 contracts with shares at $154.06.

Those calls traded for as much as $0.66 today, at least double their purchase prices. The stock rose 1.63% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

WMT was last up 0.23% to $155.33 in midday trading.