Bulls turn quick gains in $NOV

Option traders have more than doubled their money on upside positions opened in National Oilwell Varco (NOV) only a few sessions ago.

On June 27, Investitute’s proprietary programs flagged the purchase of 3,900 July $23.50 calls for $0.18 with shares at $21.43. There was no open interest in the strike before the trade occurred, showing that this was fresh buying.

Those calls traded up to $0.43 today, about 2.5 times their purchase price. The stock rose 6.63% in the same time frame, illustrating how 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.

NOV is up 0.83% to $12.14 this afternoon. The energy equipment and services company has rallied with the recent rebound in the price of oil.