A bullish option position opened in the Global X Uranium ETF (URA) in the first of this month is turning big gains this session.
Those calls closed marked for $0.37 this afternoon, an 85% return, while the stock rose 5.96% in the same time frame, 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.
URA was last up 3.13% at $25.68 today.
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