Bulls quadruple money in $FCX

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

On Jul. 6, Market Rebellion’s Unusual Activity Scanners showed that 4,552 November $12 calls were bought for $1.23 as part of a bullish roll above open interest of 1,110 contracts with shares of $12.69.

Those November $12 calls traded for $5.15 today, more than 4 times their purchase price. The stock rose 33.57% in the same time frame, underscoring 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.

FCX was last up 2.32% to $16.79 in afternoon trade. The mining company was reportedly discussed as an acquisition target in recent months by Barrick’s (GOLD) executive suite.