$XRAY bulls quadruple money

Option traders have racked up large profits on upside positions in Dentsply Sirona.

On Jan. 23, Investitute’s proprietary programs flagged the purchase of 2,000 March $43 calls for $1.30 as part of a bullish spread with shares at $41.09. Open interest in the strike was a mere 9 contracts before that session began, showing that it was a new position.

Those calls were marked at $6.05 at end of of today’s session, more than 4.5 times their purchase price. The stock rose 19.15% in the same time period, underscoring how 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.

XRAY was up 0.55% to $48.96. The dental-products manufacturer beat quarterly estimates on the top and bottom lines March 1.