$YNDX calls turn quick profits

It took barely a week for bullish option traders to double their money in Yandex (YNDX).

On Oct. 11, Market Rebellion’s proprietary programs flagged the purchase of 2,700 November $32 calls for $0.90 to $1 with shares at $29.55. This was clearly fresh buying, as open interest in the strike was a mere 12 contracts before the activity appeared.

Those calls traded for as much as $2.01 today, more than twice their purchase prices. The stock rose 11.44% in the same time frame,

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 is up 8.84% to $32.39 in midday trading. The search-engine operator, which primarily services Russia nd other Eastern European nations, rallied today on reports that Moscow regulators may raise the cap on the number of shares that can be owned in key tech companies by non-Russian investors.