$GLNG calls double overnight

Option traders have racked up substantial profits on bullish positions opened in Golar LNG just 24 hours earlier.

Just yesterday, Investitute’s market scanners identified the purchase of 1,112 May $30 calls for $1.05 as part of a bullish roll with shares at $29.14. This was clearly a new position, as volume was double the strike open interest.

Those calls traded as high as $2.35 today, more than doubling in price. The stock rose 6% at the same time, 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.

GLNG jumped 4.96% to close at $30.89 this afternoon. The Bermuda-based liquefied natural-gas company reached a preliminary agreement on a transport vessel in West Africa.