$JETS call prices rise

Bullish option traders collected big profits in the US Global Jets ETF (JETS) today.

On Jan. 15, Market Rebellion’s Unusual Activity Service flagged the purchase of 5,000 March $25 calls for $1.00 with shares at $22.72 as part of a bullish spread.

Those calls traded for as much as $3.88 today, over 3.5 times their purchase price. The stock rose 26.54% 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 3.78% today at $28.72 as its holdings trade higher.