$FTI bulls double their money

Option traders have turned quick profits in TechnipFMC.

On July 19, Investitute’s tracking systems identified the purchase of 4,700 August $33 calls for $0.55 to $0.70 with shares at $30.33. These were clearly new positions, as volume was well above the strike’s open interest of 1,862 contracts.

Those calls traded up to $1.44 today, more than twice their purchase prices. The stock rose 10.52% in the same time frame, showing how quickly options can 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.

FTI was up 2.59% today to close at $33.33. The U.K. energy-services company has rallied since announcing quarterly results last week.