$AXP option bulls swipe for gains

Patient, bullish option traders are turning big gains in American Express (AXP).

On Mar. 5, 2024, Market Rebellion’s Unusual Activity programs detected the purchase of 47,530 January 2026 $320 calls for $8.50 with shares at $217.61. This was clearly fresh buying, as volume was clearly above the strike’s previous open interest of 3 contracts.

Those calls have traded for as much as $41.37 so far today, a 386.71% return, while the stock rose 49.35% in the same time frame, illustrating how quickly options can far outperform their underlying calls.

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.

AXP was last at $324.78, up 0.79% on the session.