$TECK calls double overnight

Bullish option traders are logging gains in Teck Resources for the second time in less than a week.

Just yesterday, Investitute’s tracking systems detected the purchase of 2,800 May $25 calls for $0.83 to $0.94 above open interest of 587 contracts with shares at $24.50. Thabove open interest of 587 contracts. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded up to $1.61 today, about twice their initial purchase price. The stock rose 5.06% at the same time, showing how quickly options can far outpace gains in their underlying shares.

It is the second winning trade in the name posted on Investitute in the last four sessions.

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.

TECK was up 1.65% to $25.24 today. The mining company is scheduled to report earnings on April 23 before the market opens.