$EWW calls double overnight

Bullish option traders doubled their money overnight in calls tracking upside in the iShares Mexico ETF.

Just yesterday, Investitute’s market scanners found that 4,280 18April $46 calls were purchased for $0.19 and $0.20 with shares at $44.11. This was clearly fresh buying as the open interest for that contract amounted to only 671 going into the day.

Investitute co-founder Jon Najarian cited the unusual activity in choosing EWW for his final trade on CNBC’s “Halftime Report.”

Those 18April 46 calls sold for as much as $0.47 today, more than double their purchase price. The stock rose 2.31% in the same time frame, 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.

EWW was up 2.56% to close at $44.94 today. The ETF, which tracks a basket of Mexican equities, rose sharply as the U.S. dollar fell after today’s Federal Reserve announcement.