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United Parcel Service Inc. (UPS) delivered huge returns on upside option positions Wednesday, July 25.

On June 28, Investitute's market scanners found that 6,500 Weekly $110 calls expiring on July 27 were bought for $1.48 to $1.57 with shares at $105.70. These were clearly new positions, as open interest in the strike was a mere 84 contracts before those trades occurred.

UPS was slated to report earnings on July 25, before the opening bell, and these investors may have wished to participate in the report with limited downside risk, as being long a call contract limits losses only to what you pay for the options.

Those 27 July $110 calls sold for as much as $8.99 Wednesday afternoon, six times their purchase prices. The stock rose 12.54% in the same time frame, underscoring how options can far outperform their underlying shares. These investors 'risked one to make six', illustrating the benefits of those calls.

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United Parcel Service jumped 6.91% to $120.21 Wednesday, July 25. The package-delivery giant surpassed second-quarter expectations on the top and bottom lines that morning.

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.