Bulls triple their money in $BWP

It took less than a week for option traders to post large profits in Boardwalk Pipeline Partners.

On June 20, Investitute’s proprietary programs flagged the purchase of 3,000 August $11 calls for $0.32 as part of a bullish roll with shares at $10.24. Volume was well above the strike’s open interest of 1,213 contracts, showing that this was a new position.

Those calls traded up to $1 today, more than 3 times their purchase price. The stock rose 13.3% at the same time, illustrating the kind of leverage that can be achieved 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.

BWP jumped 8.67% today to close at $11.66. The energy-pipeline operator has rallied amid buyout speculation in recent weeks.