$ICLN call prices power up

Option traders are scoring big gains in upside positions on the iShares Global Clean Energy ETF (ICLN) today.

On Jul. 8, Market Rebellion’s Unusual Option Activity Service found that 15,000 August $22 calls were bought for $0.40 as part of a bullish roll with shares at $20.04. This was clearly fresh buying, as open interest in the contract was just 51 before the activity appeared.

Those calls changed hands for $0.89 this session, over 2 times their purchase price. The stock rose 9.03% in the same time frame, 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.

ICLN last was up by 6.16% at $21.62.