$DAL call buyers turn large profits

Bullish traders have more than doubled their money in Delta Air Lines.

On Feb. 9, Investitute’s proprietary programs flagged the purchase of 10,000 March $52.50 calls for $1.62 as part of a bullish spread with shares at $51.29. This was clearly a new position, as open interest in the strike was only 2,194 contracts.

Those calls traded for $4 late this afternoon, 2.5 times their purchase price. The stock rose 9.8% in the same time period, 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.

DAL was up 0.12% to $56.16 today. The airline operator has rallied with other carriers in recent days as the transportation sector has rebounded.