$URA bulls score major gains

A bullish option position opened in the Global X Uranium ETF (URA) only three sessions ago is turning exponential gains.

On Sep. 1, Market Rebellion’s Unusual Activity Service found that 7,500 September $23 calls were bought for $0.10 and $0.15 above the existing open interest of 11 contracts with shares at $21.09.

Those calls sold for $1.90 this afternoon , more than 12.5 times their purchase prices. The stock rose 16.22% 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 up 4.04% to close at $23.93 today.