$SONO bulls score fast money

Option traders have already doubled their money on upside positions opened in Sonos (SONO) just last week.

On Oct. 28, Market Rebellion’s tracking systems detected the purchase of 2,900 November $15 calls for $0.20 to $0.25 with shares at $13.09. Volume was above the strike’s existing open interest of 2,418 contracts, showing that this was a new position.

Those calls sold for as much as $0.55 today, more than twice their purchase prices. The stock rose 14.59% 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.

SONO is up 3.91% to $14.90 this morning. The audio-systems manufacturer has rallied with buyout speculation in recent days.