$PG bulls triple their money

Option traders have racked up gains on upside positions in Procter & Gamble even amid the broader market’s recent volatility.

On Sept. 20, Investitute’s market scanners identified the purchase of 8,900 November $87.50 calls for $0.89 as part of a bullish roll with shares at $85.40. This was clearly a new position, as volume was far above the strike’s open interest of 1,244 contracts.

Those calls traded up to $2.77 this morning, more than 3 times their purchase price. The stock rose 4.51% 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.

PG was up 0.43% to $88.24 today. The consumer-products giant has outperformed the broader market as investors have sought relative safety in consumer staples.