$PPC call prices double

Bullish option traders are racking up big gains in Pilgrim’s Pride Corporation (PPC) this session.

On Apr. 26, Market Rebellion’s Unusual Activity Service found that 5,000 May $30 calls were bought as part of a bullish spread for $0.28 above the existing open interest of 46 contracts with shares at $26.76.

Those calls have traded up to $0.55 this session, about 2 times their purchase prices. The stock rose 12.03% at the same time, showing how quickly options can far outperform their underlying shares.

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.

PPC was last at $30.04 in late afternoon trade, up 3.66% on the session.