Bulls continue their ride in $PG

Option traders turned more profits on bullish positions in Procter & Gamble opened just two weeks prior.

On June 21, Investitute’s tracking systems showed that 3,200 $77 calls expiring on July 20 were purchased for $0.80 to $1.27 with shares at $76.67. These were clearly new positions, as volume was well above the strike’s open interest of 308 contracts. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls sold for $2.46 today, double their initial purchase price. The stock rose 3.3% at the same time, showing how quickly options can far outperform their underlying shares. It was the second winning trade for Procter & Gamble bulls in recent weeks.

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.

PG was up 1.75% to $79.21 today. The stock edged higher today with continued strength in the Consumer Staples sector.