$MOS call prices double overnight

It has taken just one session for option traders to double their money in Mosaic (MOS).

On Jan. 13, Market Rebellion’s Unusual Activity Service found that 6,000 January $27 calls were bought for $0.14 to $0.20 above open interest of just 371 contracts with shares at $25.73.

Those calls changed hands for $0.55 this session, a 175% return, while the stock rose 5.48% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

MOS was last up by 0.8% at $27.04.