$WLL calls jump threefold

It took less than two weeks for option traders to triple their money on bullish positions in Whiting Petroleum.

On June 14, Investitute’s proprietary programs flagged the purchase of 3,100 July $18 calls for $0.54 to $0.64 with shares at $15.87. Volume was more than double the previous open interest in the strike, showing that this was fresh buying.

Those calls traded up to $1.61 today, about 3 times their initial purchase price. The stock rose 16.32% in the same time frame, 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 $18.74 this morning but has pulled back to $18.19 this afternoon, off 1.99% on the day. The oil and gas producer rallied along with other energy names as the price of crude rebounded in the last week.