$BA call prices liftoff overnight

Option traders who opened bullish positions in Boeing (BA) just yesterday morning were rewarded with profits today as call prices flew higher.

Yesterday on Dec. 2, Market Rebellion’s Unusual Activity programs found that 18,000 Weekly $220 calls were bought for $1.25 to $4.00 with shares at $218.52. Volume was well above the strike’s existing open interest of 12,366 contracts, indicating that this was fresh buying.

Those calls traded for as much as $22.00 so far today, at least 5.5 times their purchase prices. The stock rose 10.67% in the same time period, showing how options can far outpace gains 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.

BA closed up on the session by 5.99% at $237.20. Ryanair (RYAAY) announced that it had signed a purchase agreement for 75 new Boeing’s MAX-8200 aircraft this morning.