$RPM bulls make fast gains

Bullish option traders made fast gains in RPM International (RPM) today.

Just yesterday, Investitute’s tracking systems identified the purchase of 5,000 August $65 calls in one print for $0.55 with shares at $60.66. This was clearly a new position, as open interest in the strike was just 165 contracts before the trade occurred.

Those calls traded for $1.25 today, more than double their purchase price. The stock rose 1.93% in the same time, showing how 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.

RPM rallied off its lows from yesterday, today, to close up by 0.59% to $61.84. The specialty coatings, sealants and building materials manufacturer closed at its highest level since December of last year. today.