$EWZ bulls quadruple money overnight

Bullish option positions opened in the iShares MSCI Brazil Fund (EWZ) yesterday were already paying traders handsomely by this morning.

Yesterday on Sep. 4, our Unusual Activity Service found that 13,100 Weekly $32 calls expiring tomorrow, Sep. 4, were bought for $0.06 and $0.07 above open interest of 1,161 as part of a bullish spread with shares at $30.77.

Those calls traded for $0.29 this morning, over 4 times their purchase prices. The stock rose 3.61% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

EWZ moved up to $31.91 this morning but has traded lower with the market last down 0.23% at $31.04. The exchange-traded-fund tracks a basket of Brazilian equities.