$INDA call prices rise

Bullish iShares MSCI India ETF (INDA) option traders who opened upside positions earlier this month are already seeing gains.

On Mar. 12, Market Rebellion’s Unusual Option Activity Service found that 9,800 June $52 calls were bought for $0.65 to $0.70 with shares at $48.66. This was clearly fresh buying, as open interest in the contract was just 2,991 before the activity appeared.

Those calls changed hands for as much as $1.70 this session, a 142.86% return, while the stock rose 6.06% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

INDA finished the session lower by 1.22% at $51.40.