$MARA option bulls score

Marathon Patent Group (MARA) rallied sharply today, returning exponential gains on option positions opened just a few sessions earlier.

On Oct. 13, Market Rebellion’s Unusual Activity Service found that 5,400 Weekly $44 calls, expiring this Friday, were bought for $1.50 to $2.17  above open interest of 840 contracts with shares at $41.87.

Those calls traded for $9.30 this morning, at least quadruple their purchase prices. The stock surged 26.75% 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 $50.73, up 3.76% on the session.