$MARA option bulls mine major profits

On Jul. 3, Market Rebellion’s Unusual Option Activity Service found that 12,200 Weekly $15 calls, expiring today, were bought for $0.50 to $0.67 with shares at $14.34. This was clearly fresh buying, as open interest in the contract was just 9,397 before the activity appeared.

Those calls have traded for up $1.70 today, a 153.73% return, while the stock surged 16.53% in the same time period, an enormous move but one that was still dwarfed by the gain of its options 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.

MARA was last at $15.69, up 2.42% on the session.