Bulls hammer quick profits in $NUE

It took just four sessions for traders to more than double their money in Nucor.

On Tuesday, Investitute’s market scanners found that 3,400 Weekly $60.50 calls expiring on Dec. 29 were purchased for $0.55 to $0.60 with shares at $57.73. There was no open interest in the strike before the trades occurred, showing that this was fresh buying.

Those calls sold for $1.46 today, more than 2.5 times their original purchase price. The stock rose 5.1 percent in the same time frame, reflecting the kind of leverage that can be achieved through options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

NUE was up 2.7 percent today to close at $60.17. The company has rallied along with other steel makers this week after the Commerce Department took steps to strengthen anti-dumping measures.