$XLC bulls score a huge win

Bullish traders made out-sized gains today on upside option positions opened at the beginning of the week in the SPDR Communication Fund (XLC).

On Monday, July. 22, Investitute’s tracking systems detected the purchase of 10,000 August $52 calls $0.05 and $0.10 with shares at $49.50. This was clearly a new position, as the call volume was far above the strike’s open interest of 266 contracts.

Those calls traded up to $0.70. today, nearly ten times their average purchase prices. The stock rose 4.56% in the same time period, illustrating the kind of leverage that can be achieved through options.

XLC has spiked higher, currently up by 2.94% on the day to $51.76, as its second largest component by composition, both Alphabet Class A and C shares, reported earnings after the bell yesterday, beating estimates on both its top and bottom lines.