Option bulls score profits in $AAPL

Option traders are scoring big profits on upside positions opened in Apple (AAPL) last Friday.

On Nov. 12, Market Rebellion’s Unusual Activity Service found that 8,000 Weekly $150 calls, expiring Dec. 23, were bought for $4.40 to $4.55 as part of a bullish spread above open interest of 2,071 contracts with shares at $149.89.

Those calls traded for as much as $6.85 today, over 1.5 times their purchase prices. The stock rose 5.77% at the same time, underscoring 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.

AAPL was up by 2.85% to $157.87 at the close of today’s trade.