Bulls turn quick gains in $APA

Option traders have already doubled their money on upside positions opened in Apache (APA) at the beginning of the week.

On Oct. 14, our activity scanners identified the purchase of 12,500 December $25 calls in one print for $0.60 against no open interest with shares at $21.13. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report” and updated the trade today.

Those calls traded for as much as $1.15 today, about twice their purchase price. The stock rose 7.71% 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 is up 1.41% to $22.49 in midday trading. Quarterly results from the natural-gas and oil producer are estimated for Oct. 30 after the market closes.