$WMT call prices quadruple

Option traders rang up big profits on bullish positions in Walmart today.

On Feb. 12, Investitute’s proprietary programs showed that 6,000 Weekly $100 calls expiring on Feb. 22 were purchased for $1.02 to $1.25 with shares at $96.89. This was clearly fresh buying, as volume was far above the strike’s open interest before that session began.

Those calls sold for as much as $4.30 today, more than 4 times their initial purchase price. The stock rose 7.37% 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 up 2.21% to $102.20 today. The retail giant topped earnings and sales estimates before the market opened this morning.