Fast profits for option bulls in $NTR

Bullish option traders are growing lush profits today in Nutrien (NTR).

Yesterday on Jun. 21, Market Rebellion’s Unusual Activity Service found that 5,400 July $62 calls were bought for $0.60 to $0.75 with shares at $59.64. This was clearly fresh buying, as there wasn’t any open interest in the strike before the activity appeared.

Those calls traded for as much as $1.27  today, about 2 times their purchase prices. The stock rose 3.39% at the same time, underscoring how quickly 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.

NTR closed at $61.30, up 2.85% on the day after raising guidance for the first half of its fiscal year yesterday.