Bulls triple their money in $YNDX

Yandex got a major boost after striking a deal with Uber this summer, and continued momentum has resulted in large gains for upside option positions.

On Aug. 31, Investitute’s market scanners showed that 6,100 Weekly $31 calls that expired this afternoon were purchased for $0.75 to $0.95 with shares at $30.12. These were clearly new positions, as open interest in the strike was a mere 29 contracts before the activity appeared.

Today calls traded up to $2.40 today, more than triple their original price. The stock rose 10.2 percent in the same time, showing how options can far outpace gains in their underlying shares. Investitute co-founder Pete Najarian cited November call buying in the name on CNBC’s “Halftime Report” last month.

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.

YNDX was up 1.75 percent today to close at $33.20. The search engine, which primarily services Russia nd other Eastern European nations, spiked higher with bullish option activity after announcing a joint venture with Uber in July.

Yandex call buyers turn 400% profit