$MU bulls triple their money

It took only four sessions for option traders to score exponential profits on short-term positions in Micron Technology.

On March 18, Investitute’s tracking systems showed that 3,825 Weekly $41 calls expiring Friday afternoon were purchased for $1.02 as part of a bullish spread with shares at $39.83. This was clearly a new position, as volume was well above the strike’s existing open interest.

Those calls traded for as much as $3.22 today, more than 3 times their purchase price. The stock rose 10.92% in the same time frame, showing 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.

MU surged 9.62% to $43.99 today. The memory-chip maker topped expectations on the top and bottom lines after the market closed yesterday.