$TECK calls log profits

Bullish option traders are logging profits in Teck Resources (TECK) calls today.

On Jul. 22, Market Rebellion’s Unusual Activity Service detected the purchase of 3,200 November $12 calls for $1.13 to $1.19 as part of a bullish roll with shares at $10.84. This was clearly fresh buying, as volume was well above the strike’s existing open interest of 1,232 contracts.

Those calls have traded up to $2.69 so far today, at least 2 times their purchase prices. The stock rose 29.98% 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.

TECK is up 0.66% to $13.68 currently. The mining company has risen sharply while the price of copper has neared levels not seen since early 2018.