$PUBM call buyers bid up profits

Bullish option positions opened in PubMatic Inc (PUBM) this week are bidding higher today as shares rise.

On May 9, Market Rebellion’s Unusual Activity Service found that 15,000 June $15 calls were bought for $0.35 as part of a bullish spread above the previous open interest of 130 with shares at $12.66.

Those calls have traded for as much as $0.90 this session, a 157.14% return, while the stock gained 17.93% at the same time, a large move but nowhere near that of its options on a relative basis.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

PUBM was last up on the session by 4.85% at $14.93.