$ZNGA calls run up score again

Zynga paid off for bullish option traders today for the third time in less than a week.

On April 25, Investitute’s proprietary programs flagged the purchase of 20,000 September $6 calls for $0.34 as part of a bullish roll with shares at $5.44. This was clearly a new position, as open interest in the strike was only 733 contracts before the trade occurred.

Those calls traded for as much as $0.67 today, about twice their purchase price. The stock rose 12.68% 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.

It is the third winning trade in the name posted on Investitute since May 2.

ZNGA reached $6.16 this morning before pulling back with the rest of the market to close at $6.04, 0ff 0.82% on the day. The social-game developer beat quarterly estimates and raised guidance after the market closed on May 1.