$WLL bulls quintuple their money

It took just one week for upside option traders to post huge profits in Whiting Petroleum.

Last Friday, Investitute’s market scanners show that 6,000 Weekly $34.50 calls expiring this afternoon were purchased for $0.85 to $1.06 as part of a bullish roll with shares at $34.57. This was clearly a new position, as open interest was only 123 contracts before the trade occurred.

Those calls traded for $4.35 today, more than 5 times their initial purchase price. The stock rose 12.4% in the same time frame, 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.

WLL jumped 4.38% to $38.63 today. The oil and natural-gas producer has risen with the price of crude, which is trading at its highest level in three years.