$ASHR pays off again for bulls

It took just two sessions for option traders to chalk up another win in the Xtrackers Harvest CSI 300 China A Fund.

On Feb. 28, Investitute’s market scanners found that 3,575 Weekly $28 calls expiring on March 8 were purchased for $0.39 with shares at $27.49. This was clearly a new position, as open interest in the strike was only 170 contracts before the activity appeared.

Those calls traded for as much as $0.87 today, more than twice their purchase price. The stock rose 4.11% in the same time frame, showing how quickly options can far outpace gains in their underlying shares.

It is the third winning trade in the name posted on Investitute in the last week.

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.

ASHR was up 0.85% to $28.43 today. The exchange-traded fund has rallied with hopes of a U.S.-China trade agreement.