$CRC calls more than double overnight

It took just 24 hours for bullish traders to reap large gains in California Resources.

Yesterday Investitute’s tracking systems detected the purchase of 2,600 November $11 calls for $1.70 to $3.20 with shares at $14. Volume was well above the strike’s open interest of 1,985 contracts, indicating that this was fresh buying.

Those calls sold for $6 today, more than 2.5 times their original purchase price. The stock rose 21.3 percent at the same time, underscoring how quickly options can far outpace gains in 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.

CRC jumped 13.52 percent to $16.04 today. The oil and natural-gas producer beat earnings expectations after the market closed yesterday.