Patient bulls find profits in $COP

Traders are reaping huge gains today on bullish positions opened just over four months ago in ConocoPhillips (COP).

Back on May 10, Market Rebellion’s Unusual Activity Service found that 5,200 October $55 calls were bought as part of a bullish roll for $6.30 to $6.47 above the existing open interest of 711 contracts with shares at $57.54.

Those calls have traded up to $12.92 today, about 2 times their purchase prices. The stock rallied 17.76% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

COP was last up 2.85% today at $68.61. The oil and gas producer has risen along with the price of crude.