$MOS calls grow 3-fold

It has taken just four sessions for option traders to triple their money in Mosaic (MOS).

On Mar. 21, Market Rebellion’s Unusual Activity Service found that 2,200 Weekly $65 calls, expiring tomorrow, were bought for $2.05 to $2.65 above open interest of just 1,927 contracts with shares at $65.18.

Those calls changed hands for $6.39 this session, about 3 times their purchase prices. The stock rose 9.33% 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 1.04% at $68.71 after reaching a new 52-Week high of $71.38 earlier in the session.