$MRO call prices double

Option traders racking up big profits today on bullish positions in Marathon Petroleum (MRO).

On Mar. 1, Market Rebellion’s Unusual Activity Service found that 15,000 July $25 calls were bought as part of a bullish spread for $2.13 to $2.62 above the existing open interest of 1,287 contracts with shares at $22.73.

Those calls have changed hands for as much as $7.79 today, over 2.5 times their purchase prices. The stock rose 42.54% at the same time, underscoring how quickly options can far outpace gains in their underlying shares.

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.

MRO is currently up by 0.84% at $31.70.