How bulls tripled their money in $MU

Micron Technology surged to 52-week highs today, handing exponential profits to upside option traders.

On Aug. 28, Investitute’s tracking systems detected the purchase of 26,400 October $35 calls for $0.70 to $0.79. Shares were trading for $31.08 at that time.

Those calls ended today’s session trading for $2.72, more than triple their original prices. The stock rallied 19.3 percent in the same time period, a large move but nowhere near that of its options.

It was one of several winning bullish trades in the name recently. On CNBC’s “Halftime Report” today, Investitute co-founder Jon Najarian gave an update on a position he opened on Aug. 16 after our scanners identified massive buying in September 33 calls.

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 jumped 8.51 percent to $37.09 today, making it the top performer in the S&P 500. Several Wall Street analysts raised their price targets for the memory-chip maker based on strong quarterly results and guidance reported last night.