$X bulls quintuple their money

Option traders are cashing in big profits on upside positions in U.S. Steel (X) that expire today.

On Oct. 24, Market Rebellion’s tracking systems detected the purchase of 3,000 Weekly $11.50 calls expiring this afternoon for $0.40. The trade was part of a bullish spread with shares at $11.17.

Those calls have traded for as much as $2.22 so far today, more than 5.5 times their purchase price. The stock rose 22.92% in the same time frame, underscoring how quickly options can far outperform 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.

X is up 17.12% to $13.48 in midday trading. The steel maker’s revenues exceeded estimates after the market closed yesterday.