$DAL wins again for call buyers

Option traders posted exponential gains on bullish positions in Delta Air Lines today.

On Nov. 12, Investitute’s market scanners flagged the purchase of 2,500 December $60 calls for $0.86. The trade was part of a bullish spread with shares at $56.78.

Those calls sold for $2.52 this morning, about 3 times their purchase price. The stock rose 7.89% in the same time frame, underscoring how quickly options can far outperform their underlying shares. It was the second winning trade in the name posted on Investitute in the last week.

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 rose 3.14% to $60.71 today. The airline has rallied along with other carriers as the price of crude oil has fallen.