$VOD bulls dial in for profits

Vodafone (VOD) is climbing to a new 52-Week high today, and bulls are dialing into profits.

On Nov. 16, Market Rebellion’s Unusual Activity Service identified the purchase of 30,000 April $17 calls for $1.00 as part of a bullish roll with shares at $16.79. This was clearly a new position, as open interest in the strike was only 1,488 contracts before the trade occurred.

Those calls have changed hands for as much as $2.01 so far this session, double their purchase price. The stock rose 12.57% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

VOD has climbed 0.61% to $18.94 today. The British multinational telecommunications company announced last week that it is seeking to raise EUR 2 billion from an IPO of it European phone tower unit, Vantage Towers.