$CDE option bulls mine gains

Bullish option traders are mining big gains in Coeur Mining Inc (CDE) today.

On Oct. 12, Market Rebellion’s Unusual Activity Service found that 5,900 November $6 calls were bought for $0.60 above open interest of just 196 contracts with shares at $6.12.

Those calls traded for as much as $1.48 this session, at least 2 times their purchase price. The stock rose 22.55% 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.

CDE rose to $7.64 early and finished the session at $7.05, up 1.59%.