Flood of profits for $AQUA bulls

Option traders are seeing a flood of profits profits in Evoqua Water Technologies (AQUA) as shares charge to a new high.

On May 21, Market Rebellion’s Unusual Activity Service found that 2,127 June $30 calls were bought for $1.10 above open interest of just 121 contracts with shares at $29.55.

Those calls sold for $3.20 this session, about 3 times times their purchase prices. The stock rose 12.45% in the same time period, 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.

AQUA was last higher on the session at $33.24, up 3.36%.