How $YNDX calls surged fourfold

Option traders cashed in exponential profits on bullish positions opened in Yandex just last week.

On Feb. 12, Investitute’s market scanners identified the purchase of 7,500 March $38 calls for $1.30 as part of a bullish spread with shares at $36.55. This was clearly a new position, as open interest in the strike was only 2,025 contracts before the trade occurred.

Today those calls sold for $5.30 this morning, 4 times their purchase price. The stock rose 17.8% in the same time frame, underscoring how options can far out 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 hit $43.70 right after the opening bell but pulled later in the day and closed at $42.39, off 2.53%. The Russian search-engine operator reported strong growth last week.