$JETS call prices fly higher

Bullish option traders collected fast profits as the US Global Jets ETF (JETS) took off today.

On Nov. 5, Market Rebellion’s Unusual Activity Service flagged the purchase of 51,000 November $20 calls for $0.15 to $0.20 with shares at $17.97. This was clearly fresh buying, as open interest in the strike was only 8,821 contracts before that session began.

Those calls have traded for as much as $2.38 today, over 11.5 times their purchase prices. The stock rose 23.04% in the same time frame, underscoring how options can far outperform moves in 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.

JETS was last up 16.03% today at $20.60.