$COP call buyers turn quick gains

It took just one session for bullish option traders to double their money in ConocoPhillips.

On Friday, Investitute’s tracking systems showed that 1,900 Weekly $61 calls expiring on April 13 were purchased for $0.27 to $0.35 with shares at $59.02. This represented fresh buying, as volume was well above the strike’s open interest of 1,149 contracts.

Those calls traded up for $0.62 today, more than twice their initial purchase price. The stock rose 3.4% at the same time, illustrating the kind of leverage that options can be obtained quickly with options. Investitute co-founder Pete Najarian cited those calls today on CNBC’s “Halftime Report,” as well as fresh buying in another April strike.

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.

COP was up 2.29% to $60.62 today. The oil and natural-gas producer has rallied along with other energy names that have been catching up to the recent bounce in crude prices.