$OTIS call prices elevate at highs

Otis Worldwide (OTIS) shares reached a new all-time-high today, and bullish option traders are seeing their call prices elevate.

On Apr. 23, Market Rebellion’s Unusual Activity Service found that 7,500 June $80 calls were bought as part of a bullish spread for $0.30 above open interest of just 134 contracts with shares at $71.12.

Those calls sold for as much as $1.76 this afternoon, at least 5.5 times their purchase prices. The stock rose 14.06% in the same time period, illustrating the kind of leverage that can be achieved 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.

OTIS closed the session lower by 0.12% at $80.75 after reaching a new all-time-high of $81.18 earlier in the session. The elevator and escalator manufacturer topped earnings expectations and raised guidance during its earnings report on Apr. 26.