$DAL call prices keep climbing

Upside positions in Delta Air Lines, Inc. (DAL) are flying higher today.

On Jul. 11, Market Rebellion’s Unusual Activity Service found that 10,000 January $55 calls were bought for $1.09 with shares at $44.03. This was clearly fresh buying, as open interest in the strike was just 4,633 contracts before the activity appeared.

Those calls have sold for as much as $13.92 today, a 1,177.06% return, while the stock rose 56.05% 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.

DAL was last higher by 8.89% at $66.88.