$NCR bulls check out fast profits

Option traders are turning fast profits on upside positions in NCR Corporation (NCR) today.

On Apr. 27, Market Rebellion’s Unusual Activity programs found the the purchase of 10,300 July $35 calls for $1.40 to $1.70 above the existing open interest of 101 with shares at $30.18.

Those calls have traded up to $5.00 today, about 3 times their purchase prices. The stock rose 23.19% in the same time frame, a large move but nowhere near that of its options on a relative basis.

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.

NCR was last up 11.98% to $35.40 today.