Bulls double money in $FTI

Option traders logged big gains on upside positions in TechnipFMC today thanks to strong quarterly results.

On July 19, Investitute’s market scanners identified the purchase of 2,500 October $25 calls in one print for $1.65 above open interest of 67 contracts with shares at $24.93. Investitute co-founder Jon Najarian chose the name for his final trade on CNBC’s “Halftime Report” at that time.

Those calls traded for as much as $3.56 today, more than twice their purchase price. The stock rose 12.39% in the same time frame, showing how options can far outperform 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.

FTI is up 5.42% to $27.82 in afternoon trading. The energy-services company beat earnings and revenue estimates last night and reported a record volume of orders.