$OVV option bulls score at highs

Bullish option traders hit a gusher in Ovintiv Inc (OVV) today.

On Sep. 13, Market Rebellion’s Unusual Activity Service found that 3,000 October $34 calls were bought for $0.50 to $0.55 above the existing open interest of 169 contracts with shares at $29.54.

Those calls have sold for as much as $2.60 this session, about 5 times their purchase prices. The stock rose 22.65% 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.

OVV has risen sharply over the last month, last up 4.99% to $37.48 in afternoon trade today.