$WMT Options Bull Bags Profits

Option traders are posting fast profits today in bullish positions opened on Walmart Inc (WMT).

On Oct. 6, Market Rebellion’s Unusual Activity Service found that 105,000 20November 115 calls were bought for $1.52 with shares at $106.34.

Those calls have traded for up to $8.85 so far today, a 482.24% return, while the stock rose 14.12% in the same time frame, 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.

WMT was last up 1.93% at $118.40 in afternoon trade.