$FCX calls shoot up overnight

Option traders nearly quadrupled their money today in bullish positions opened in Freeport-McMoRan only one session earlier.

Just yesterday, Investitute’s market scanners identified the purchase of 10,000 18April $13.50 calls in one print for $0.15 as it added to volume in the same strike from April 9. Investitute co-founder Jon Najarian cited the unusual activity on CNBC’s “Halftime Report” today.

Those calls sold for as much as $0.58 today, almost 4 times their purchase price. The stock rose 5.35% at the same time, showing how quickly options can far outpace gains in their underlying shares.

It is the second winning trade in the name posted on Investitute this 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.

FCX was up 2.54% to $13.70 today. The mining and energy company reports earnings before the market opens on April 25.