$TT call prices heat up

Bullish option traders who opened upside call positions in Trane Technologies PLC (TT) earlier last month are making big gains today.

On Sep. 13, Market Rebellion’s Unusual Activity Service found that 2,611 October $370 calls were bought for $8.57 above open interest of 322 contracts with shares at $360.10.

Those calls have traded traded for as much as $21.40 this session, a 149.71% return, while the stock rose 7.71% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

TT was last lower on the day by 0.22% to $387.72.