$SNAP call prices quadruple

Option traders logged exponential profits today on bullish positions opened in Snap (SNAP) just two weeks ago.

On June 4, Investitute’s proprietary programs showed that 11,500 Weekly $13.50 calls expiring on July 12 were bought for $0.34 to $0.43 with shares at $12.49. This was clearly fresh buying, as open interest in the strike was a mere 3 contracts before that activity occurred.

Those calls traded up to $1.67 today, more than 4 times their average purchase price. The stock rose 19.46% in the same time frame, 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.

SNAP jumped 9.67% to $14.86 today. BTIG raised its price target on the social network to $20 from $15 this morning.