$RTX call prices fly higher

Option traders doubled their money quickly on bullish positions in Raytheon Technologies (RTX) today.

Just 5 minutes after the opening bell this morning, Market Rebellion’s Unusual Activity Service identified the purchase of 4,850 Weekly $62 calls expiring this Friday, Aug. 14, for $0.72 to $1.25 with shares at $61.67. This was clearly fresh buying, as open interest in the strike was only 352 contracts before the activity appeared.

Those calls sold for as much as $2.57 this afternoon, at least double their purchase prices. The stock rose 4.36% in the same time frame, 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.

RTX jumped to close up by 4.9% at $64.23 today. The aerospace and industrial manufacturer blew past earnings expectations on Jul. 28.