Bulls mine quick gains in $FCX

Option traders are mining quick gains from short term upside positions in Freeport-McMoRan (FCX) today on unusual option activity trades.

On Sep. 16, Market Rebellion’s Unusual Activity Scanners showed that 9,000 September $17 calls, expiring tomorrow, were bought for $0.14 to $0.43 above open interest of 5,623 contracts with shares of $16.57.

Those calls have traded for up to $1.20 so far today, at least roughly 3 times their purchase prices. The stock rose 3.74% in the same time frame, underscoring how options can far outperform their underlying shares.

It is the second winning trade in the name to be posted by Market Rebellion in as many sessions.

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.

FCX was last up 2.44% to $17.19 in afternoon trade. The mining company has rocketed to a new 52-Week high today after reportedly being discussed as an acquisition target in recent months by Barrick’s (GOLD) executive suite, which was announced yesterday.