Option bulls hit the $MARK

Bullish option traders have run up fast gains in Remark Holdings Inc (MARK) today.

On Friday afternoon, Oct. 22, Market Rebellion’s Unusual Activity Service found that 5,000 November $2 calls were bought for $0.05 to $0.15 above open interest of just 427 contracts with shares at $1.03.

Those calls traded for as much as $4.70 this session, over 31 times their purchase prices. The stock rose 539.81% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

MARK closed today at $3.15, up 45.16% on the session.