Match (MTCH) bulls are connecting with big profits in upside call positions today.
On Sep 7, Market Rebellion’s Unusual Option Activity Service found that 2,900 September $55 calls were bought for $1.67 to $2.18 with shares at $54.31. This was clearly fresh buying, as open interest in the contract was just 126 before the activity appeared.
Those calls have traded up to $7.33 today, over 3 times their purchase prices. The stock rose 14.38% in the same time period, a large move but nowhere near that of its options on a relative basis.
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.
MTCH was last at $62.11, up 5% for the day.
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