$CARR call prices heat up

Carrier Global (CARR) shares are heading higher and bullish option traders are cooling off with gains.

On Jun. 20, Market Rebellion’s Unusual Activity Service detected the purchase of 11,000 September $67.50 calls for $3.06 to $3.60 with shares at $64.97. Volume was well above the strike’s previous open interest of just 760 contracts, showing that this was a new position.

Those calls traded for as much as $6.65 today, an 84.72% return, while the stock rose 13.74% in the same time period, underscoring how options can far outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

CARR was last higher on the session by 2.32% to $73.50.