$JETS call prices gain altitude

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

On Oct. 31, Market Rebellion’s Unusual Activity Service found that 11,500 December $16 calls were bought for $0.25 to $0.26 above the existing open interest of 2,814 contracts with shares at $14.91.

Those calls were last marked for $2.09, a 703.85% return, while the stock rose 21.06% in the same time period, underscoring how options can far outperform 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.

The JETS was up 4.27% to close at $18.06 today.