$PG call prices skyrocket 8-fold

Option traders racked up exponential profits in bullish positions on Procter & Gamble that expired this afternoon.

On Sept. 20, Investitute’s tracking systems detected the purchase of 8,900 November $87.50 calls for $0.89 as part of a bullish roll with shares at $85.40. Open interest in the strike was only 1,244 contracts before that session began, showing that this was a new position. Investitute co-founder Jon Najarian cited that unusual activity and more buying in January calls on CNBC’s “Halftime Report” early this week, which have also seen large gains.

Those calls traded for as much as $7.23 today, more than 8 times their purchase price. The stock rose 10.91% in the same time period, underscoring how 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.

PG reached a 52-week high of $94.81 this afternoon but closed at $93.82, off 0.01% on the session. The consumer-products giant has been climbing steadily since reporting strong earnings and revenue on Oct. 19.