Option bulls find more profits in $COP

Traders are reaping huge gains today on bullish positions opened in ConocoPhillips (COP).

Back on Oct. 8, Market Rebellion’s Unusual Activity Service found that 4,537 February $60 calls were bought for $15.01 above the existing open interest of 615 contracts with shares at $73.76.

Those calls closed marked for $29.40 today, nearly 2 times their purchase price. The stock rallied 21.56% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the stock posted on Market Rebellion this month.

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.

COP ended the session up 2.99% at $89.66.