Call buyers score in $APA

Option traders seeking upside from Apache (APA) are getting it today with shares trading at their highest levels in over three years.

On Nov. 24, 2021, Market Rebellion’s Unusual Activity Service found that 2,400 April $35 calls were bought as part of a bullish spread for $1.95 to $2.08 above the existing open interest of 377 with shares at $28.76.

Those calls traded for as much as $7.15 today, at least 3 times their purchase prices. The stock rose 46.14% 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 was last up 2.45% at $42.21 in morning trade today.