$VST call buyers score

Bullish traders are winning in Vistra Corp (VST) today.

On May 28, Market Rebellion’s Unusual Activity Service found that 2,350 May $65 calls were bought for $7.25 with shares at $69.40. Volume was well above the strike’s open interest of 918 contracts, indicating that this was clearly fresh buying.

Those calls have sold for as much as $13.50 today, an 86.21% return, while the stock rose 11.86% in the same time period, underscoring how options can far outperform their underlying shares.

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.

VST is up 6.71% to $77.58 in late-day trading.