$BA call prices fly higher

$BA call prices fly higher

by

Option traders who opened bullish positions in Boeing (BA) last week are being rewarded with profits today as call prices fly higher.

On Nov. 28Market Rebellion’s Unusual Activity Service found that 2,672 March $225 calls were bought for $12.02 to $12.03 above the existing open interest of 413 contracts with shares at $220.12.

Those calls have traded up to $25.19, a 109.39% return, while the stock rose 9.4% 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.

BA was last up on the session by 1.39% at $240.64.

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