$PCG call prices double intraday

Bullish option traders more than doubled their money in Pacific Gas & Electric (PCG) today.

This morning on Oct. 3Market Rebellion’s Unusual Activity Service detected the purchase of 2,000 Weekly $13 calls, expiring this Friday, for $0.15 as part of a bullish roll with shares at $12.61. Open interest in the strike before the trade occurred was just 764 contracts, showing that this was a new position.

Those calls have traded up to $0.34 so far this session, over 2 times their purchase price. The stock rose 4.36% in the same time frame, illustrating the kind of leverage that can be achieved quickly with 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.

PCG ended down 5.82% to $13.18 today.

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