Exchange bulls double their money in $ICE

Bullish option traders doubled their money in upside positions on Intercontinental Exchange (ICE) today.

On Sep. 11, Market Rebellion’s Unusual Activity tracking systems found that 2,850 September $100 calls were bought for $0.50 with shares at $98.50. This was clearly fresh buying, as open interest in the strike was only 1,748 contracts before the activity appeared.

Those calls traded up to $1.35 so far today, more than 2 times their purchase price. The stock rose 2.35% in the same time frame, 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.

ICE was last higher this session by 2.17% to $100.40. The global exchange and clearing house’s stock was initiated with a Buy with a $120 price target at Loop Capital Friday morning.