Calls lock in the price where investors buy a stock, and when they're short-term contracts such as weeklies they can really move in a hurry. The leverage can be extreme when the timing is right, but the clock is ticking on those options, so they can go to zero if the stock doesn't rally above their $11 strike price quickly. MGM shares ended yesterday's session up 10 percent at $10.97.
More than 91,000 contracts traded, compared with about 12,000 in a typical session. Calls outnumbered puts by 5 to 1, a reflection of the day's bullish sentiment.
—By CNBC Contributor Pete Najarian
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian has no positions in MGM.