$JETS call prices climb

$JETS call prices climb

by

Bullish option traders are collecting big profits in the US Global Jets ETF (JETS) today.

On Oct. 26Market Rebellion’s Unusual Activity Service found that 15,000 Weekly $15 calls, expiring Dec. 1, were bought for $0.61 to $0.62 above the existing open interest of 98 contracts with shares at $15.01.

Those calls were last marked for $2.06, a 232.26% return, while the stock rose 13.66% 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.

The JETS was last up 2.52% at $17.06 today.

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