$URA call prices go nuclear

A bullish option position opened in the Global X Uranium ETF (URA) in the first quarter of this year is turning big gains this session.

On Mar. 1, Market Rebellion’s Unusual Activity Service found that 3,345 October $20 calls, expiring this Friday, were bought for $2.45 to $2.52 as part of a bullish spread above the existing open interest of 193 contracts with shares at $17.87.

Those calls closed marked for $8.60 this afternoon , more than 3 times their purchase prices. The stock rose 39.06% 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 6.64% to close at $28.76 today.