$MRO call prices double

Option traders racked up quick profits today on bullish positions opened in Marathon Petroleum (MRO) only one session earlier.

Just this past Friday, on Dec. 6, Market Rebellion’s Unusual Option Activity Service detected the purchase of 2,900 Weekly $12 calls expiring Dec. 13 for $0.36 to $0.38 with shares at $12.14. This was clearly fresh buying, as open interest in the strike was just 655 contracts before that session began.

Those calls have changed hands for as much as $0.72 today, double their initial purchase price. The stock rose 4.45% at the same time, underscoring how quickly options can far outpace gains 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.

MRO is currently up by 1.85% at its session high of $12.68. The oil and gas producer has rallied today along with its peers, bolstered by Friday’s OPEC announcement of production cuts.