$MTCH bulls connect with profits

Match (MTCH) bulls are connecting with big profits in upside call positions today.

On Jun. 15, Market Rebellion’s Unusual Activity Scanners showed that 2,700 Weekly $95 calls expiring this Thursday were bought for $1.40 to $1.85 with shares at $87.15. This was clearly fresh buying, as open interest in the strike was only 35 contracts before the activity appeared.

Those calls have traded up to $12.50 today, at least 6 times their purchase prices. The stock rose 23.27% at the same time, showing how quickly options can far outpace 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.

MTCH was last up 0.63% to $106.67 after making a new all-time-high of $107.95 earlier. The shareholders of the dating-service operator and IAC (IAC) approved last Thursday, Jun. 28, the separation of Match Group from the remaining businesses of latter.