$WLL calls triple in days

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

Late in the afternoon on Dec. 2, Market Rebellion’s Unusual Activity Service flagged the purchase of 3,150 Weekly $5 calls expiring on Dec. 13 for $0.17 to $0.20 with shares at $4.56. Open interest in the strike was only 101  contracts before the trade occurred, showing that this was a new position.

Those calls have traded for as much as $0.56 today, triple their average purchase price. The stock rose 16.45% 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 is currently up by 17.82% at $5.29, just off its session high of $5.35 reached earlier today. The oil and gas producer has risen as the price of crude has bounced back above $58 per barrel this week.