$FDX calls double in days

It took only two sessions for option traders to score big profits in FedEx (FDX).

On Aug. 28, Our market scanners identified the purchase of 3,000 September $162.50 calls for $1.51 to $1.54 as part of a bullish spread above open interest of 255 contracts with shares at $150.80. Co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report” and updated the position on the show today.

Those calls traded for as much as $3.90 today, more than 2.5 times their purchase prices. The stock rose 6.27% in the same time frame, showing how quickly options can far outpace gains in 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.

FDX is up 0.62% to $158.40 in the final hour of trade today.The delivery giant’s shares fell on China trade concerns last week but have rebounded since then.