$MNST calls triple overnight

Option traders racked up exponential profits today on bullish positions opened in Monster Beverage only one session earlier.

Just yesterday, Investitute’s proprietary programs showed that 2,680 Weekly $58 calls expiring today were bought, as part of a complex bullish spread, for mostly $1.86 with shares at $57.90. Volume was well above the strike’s previous open interest of 328 contracts, indicating that this was fresh buying.

Those calls traded for as much as $5.95 today, more than 3 times their purchase price. The stock rallied 10.38% 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 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.

MNST jumped 8.83% to $63.11 today. The energy-drink retailer blew past quarterly estimates after the market closed yesterday, beating on both its top and bottom lines.