$EXC calls triple

Option traders scored fast gains in Exelon (EXC) as shares trade to a new 6-month high today.

On Oct. 15, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 3,700 November $41 calls for $1.60 to $1.65 as part of a bullish roll with shares at $41.35. This was clearly new position as the volume was well above the day’s previous open interest of 429 contracts, indicating fresh buying.

Those calls traded up to $5.00 today, over triple their purchase prices. Meanwhile the stock rose just 11.29% in the same time frame, underscoring how quickly options can far outperform their underlying shares.

It is the second winning trade in the name posted on Market Rebellion in the past month.

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.

EXC was last higher on the session by 2.12% at $43.75  in late-day trade after reaching as high as $46.02 earlier this morning. The utility company topped earnings expectations last Tuesday, while announcing it is conducting a strategic review of it corporate structure.