Bulls dunk on gains in $MDLZ

Bullish option traders are nearly tripling their money in Mondelez (MDLZ) today.

On Mar. 28, Market Rebellion’s Unusual Activity Service found that 3,100 Weekly $61 calls, expiring this Friday, were bought for $0.48 to $0.65 above the existing open interest of 118 with shares at $61.22.

Those calls have traded for as much as $1.85 during this session, almost 3 times their purchase prices. The stock rose 2.5% in the same time frame, showing how options can far outperform their underlying shares on a relative basis.

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.

MDLZ was last down by 0.17% to $62.60 today.