$ROKU call prices triple

It took just three sessions for bullish option traders to score big profits in Roku (ROKU).

Yesterday on Jul. 1, Our unusual tracking systems found that 5,500 Weekly $140 calls expiring this Friday were purchased for $0.53 to $0.90 above open interest of 1,065 contracts with shares at $118.90.

Those calls have traded up to $3.21 so far today, more than triple their purchase prices. The stock rose 12.06% at the same time, 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.

ROKU is up 1.62% to $130.74 in afternoon trading after last week’s announcement that Peloton (PTON) would be rolling out an app on the platform, sending more call prices higher.