Yandex call buyers turn 400% profit

Bullish option positions are drawing enormous gains in Yandex less a week after they were opened.

On Monday, Investitute’s tracking systems found that 4,300 Weekly $27 calls expiring on July 28 were purchased for $1 with shares at $26.56. There was no open interest in the strike before the trade occurred, showing that it is a new position.

Those calls traded for $5 today, a profit of 400 percent in four sessions. The stock rose 20.3 percent in the same time frame, illustrating how quickly options can far outperform 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.

YNDX jumped 15.99 percent today to close at $31.70. The search engine, which primarily services Russia nd other Eastern European nations, spiked higher this morning with the announcement of a joint venture with ride-sharing company Uber.