Bulls score with $APA

Option traders seeking upside from Apache (APA) got it today with shares trading at their highest levels since Mar. 10.

On Monday, Apr. 20, our Unusual Activity scanners identified the purchase of 2,400 Weekly $9 calls expiring today, Apr. 24, for $0.18 to $0.55 above open interest of just 1,980 contracts with shares at $8.70.

Those calls traded for as much as $2.42 today, at least 6 times their average purchase price. The stock rose 31.38% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

APA was up 1.81% to close at $10.69 today. The hydrocarbon explorer is scheduled to report earnings on May 7 before the opening bell.