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Options traders posted substantial gains in Nvidia Inc. (NVDA) - Get NVIDIA Corporation Report Tuesday, only one session after opening bullish positions in the name.

At the beginning of the week, on Monday, October 1, Investitute's tracking systems found that 6,900 Weekly $290 calls expiring on Friday, October 5, were purchased for $1.60 to $3.65 with shares at $289.21. These were clearly new positions, as open interest in the strike was far above the strike's open interest of 2,739 contracts. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC's "Halftime Report."

Shares of NVDA have had quite a run over the past couple of years, yet these investors likely believed there was more good news left to drive the fundamentals behind the stock higher.

Those calls traded for $5.40 Tuesday morning, more than twice their average purchase price. The stock rose 1.2% at the same time, showing how quickly options can far outpace gains in their underlying shares.

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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.

Nvidia reached a 52-week high of $292.75 on the morning of October 2 before pulling back to close at $286.48, down 1% on the session. Evercore ISI raised its price target on the graphics-chip maker to $400 from $300 the previous Friday.