$MTCH bulls quadruple money

It took just one session for traders to collect major profits in Match.

Just yesterday, Investitute’s tracking systems identified the purchase of 1,450 August $39 calls for $1.70 to $2.10 with shares at $38.22. These were clearly new positions, as volume was more than double the strike’s open interest of 626 contracts.

Those calls traded up to $7.60 today, more than 4 times their initial purchase price. The stock rose 22.14% 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 surged 17.28% to $45.60 today. The dating-service operator surpassed expectations on the top and bottom lines after the market closed yesterday, fueled by subscriber growth in its Tinder app.