$UAL bulls take to the skies

Option traders are racking up gargantuan gains in United Airlines (UAL) today, thanks to a strong rebound in demand.

Back on Dec. 2, our Unusual Activity Service found that 6,350 March $55 calls were bought in one print for $3.27 as part of a bullish roll, above open interest of 4,365 contracts with shares at $46.27.

Those calls have traded for $6.84 today, over 2 times their purchase prices. The stock flew 33.13% in the same time period, underscoring how options can far outperform their underlying shares on a relative basis.

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.

UAL has jumped 8.88% to last trade at $61.29 today, trading higher among its peers.