$RTN calls double overnight

Option traders are already logging big profits today on bullish positions opened in Raytheon (RTN) only one session earlier.

Just yesterday, Our market scanners identified the purchase of 2,000 October $200 calls for $0.87 to $0.95 with shares at $186.04. This was clearly fresh buying, as open interest in the strike was only 115 contracts before the activity appeared.

Those calls have traded up to $1.82 so far today, twice their average purchase price. The stock rose 2.77% at the same time, showing how quickly options can far outpace gains in 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.

RTN is up 2.95% to $190.74 this afternoon. The defense contractor will present at a Morgan Stanley conference on Sept. 12.