$WLL calls double overnight

Option traders have already posted substantial profits on bullish positions opened in Whiting Petroleum (WLL) only one session earlier.

Just yesterday, Market Rebellion’s proprietary programs flagged the purchase of 3,000 September $8 calls in one print for $0.42 with shares at $7.93. This was clearly a new position, as open interest in the strike was only 762 contracts before the trade occurred.

Those calls rose to $0.97 today, more than twice their purchase price. The stock rose 9.96% at the same time, 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.

WLL reached a session high of $8.76 in early trading before pulling back to $8.15 this afternoon, still up 1.37% on the session. The oil and gas producer has risen as the price of crude has bounced in the last week.