$JETS call prices take off

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

On Nov. 21, Market Rebellion’s Unusual Activity Service found that 13,000 December $17.50 calls were bought for $0.17 to $0.18 above the existing open interest of 23 contracts with shares at $16.68.

Those calls have traded for up to $1.13, a 527.78% return, while the stock rose 11.57% 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 last up 0.76% at $18.58 today.