Bulls triple money overnight in $FEZ

Option traders are tripling their money on upside positions in the SPDR Euro Stoxx 50 ETF (FEZ) today.

Just yesterday afternoon, Mar. 8, Market Rebellion’s Unusual Activity Service found that 5,000 March $420 calls, expiring next Friday, were bought for $0.16 to $0.18 above the existing open interest of 107 contracts with shares at $37.27.

Those calls have traded for as much as $0.55 this session, over 3 times their purchase prices. The ETF spiked 8.02% in the same time period, a large move but nowhere near that of its options on a relative basis.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

FEZ was last up 8.07% to $40.33 today.