$JETS call prices fly higher

Bullish option traders collected big profits in the US Global Jets ETF (JETS) today.

On Sep. 17, Market Rebellion’s Unusual Activity Service detected the purchase of 20,000 November $23 calls for $1.12 to $1.17 with shares at $22.70 above the existing open interest of 357 contracts.

Those calls traded for as much as $2.55 today, over 2 times their purchase price. The stock rose 9.87% in the same time frame, underscoring how options can far outperform moves 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.

JETS was up 0.74% to close at $24.47 today after trading as high as $24.98 earlier in the session.