Call buyers score again in $PG

Bullish option traders have scored again, more than doubling their money in Procter & Gamble (PG).

On three separate occasions in the month of April, Investitute’s tracking systems detected the purchase of some 50,000 November $100 calls, all as part of bullish rolls:

-On Apr. 24, 9,998 November 100 calls bought for 7.70 above open interest of 209 contracts with shares at $104.37.

-On Apr. 29, 20,000 November 100 calls bought for 8.30-8.35 above open interest of 10,210 contracts with shares at $104.99.

-On Apr. 30, 19,884 November 100 calls bought for 12.25 below open interest of 30,231 contracts, apparently adding to the previous day’s trade, with shares at $106.38.

Those calls were marked for $21.25 today, and closed $19.70, double their purchase prices. The stock rose as much as 15.93% in 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.

PG reached a new all-time-high of $121.76 today and closed at $120.41, up on the session by 3.8%. The consumer packaged-goods giant reported quarterly earnings this morning, beating on both its top and bottom lines.