Bulls triple money in $EOG

Option traders are logging major gains on upside positions in EOG Resources (EOG) ahead of quarterly results this week.

On Oct. 21, Market Rebellion’s proprietary programs flagged the purchase of 5,000 November $67 calls for $2.39 to $2.90 with shares at $67.36. There was no open interest in the strike before that session began, showing that this was fresh buying.

Those calls traded for as much as $8 today, 3 times their average purchase price. The stock rose 11% in the same time frame, underscoring how quickly 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.

EOG is up 1.93% to $75.11 this morning. The oil and gas produced is scheduled to report earnings before the market opens on Nov. 7.