Bulls find profits with $MTCH

Match (MTCH) bulls have found profits in upside call positions epxiring today.

On Mar. 25, Market Rebellion’s Unusual Activity Scanners showed that 6,000 April $70 calls expiring today were bought for $3.52 with shares at $66.29. This was clearly fresh buying, as open interest in the strike was only 5,830 contracts before the activity appeared.

Those calls have traded up to $10.91 today, more than 3 times their initial purchase price. The stock rose 22.13% at the same time, showing how quickly options can far outpace 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.

MTCH is continuing to rise off its Mar. 23 lows, last up 1.19% to $79.81. The dating-service operator, which has risen sharply while people practice social distancing, will report earnings on May 6 before the opening bell.