Option bulls keep cruising with $BA

Option traders who opened bullish positions in Boeing (BA) this month were again rewarded with profits today as call prices flew higher.

Back on Mar. 1, Market Rebellion’s Unusual Activity programs found that 10,000 Weekly $250 calls, expiring this today, Mar. 12, were bought for $0.92 to $1.06 with shares at $224.06. Volume was well above the strike’s existing open interest of 3,511 contracts, indicating that this was fresh buying.

Later in the month, yesterday, in fact, 5,500 Weekly, Mar. 12 expiring, $260 calls were bought for $0.97 to $2.69 above the open interest of 3,145 with shares at $247.70

Those calls have each traded for as much as $18.80 and $8.90 today, respectively, at least 5 and 3 times their purchase prices. The stock rose by as much as 19.98% in the same time period, showing how options can far outpace gains in their underlying shares.

This marks both the third and fourth high flying trades in the name to be posted by Market Rebellion in as many sessions.

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.

BA was last up on the session by 6.13% at $267.50, setting another new 52-Week high today.