$MPC call buyers triple money

Bullish option traders are filling up with profits in Marathon Petroleum (MPC) calls.

On Apr. 28, Market Rebellion’s Unusual Activity Service found that 2,060 May $95 calls were bought as part of a bullish spread for $1.04 to $1.12 above the existing open interest of 651 contracts with shares at $87.64.

Those calls have sold for as much as $3.21 today, about 3 times their purchase prices. The stock rose 22.02% 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.

MPC was last up 3.64% to $95.98 this afternoon, a new 52-Week high.