$BBBY calls triple overnight

Option traders logged exponential profits today on bullish positions opened in Bed Bath & Beyond (BBBY) only one session earlier.

Just yesterday, Market Rebellion’s tracking systems found that 10,000 Weekly $13.50 calls expiring this Friday were bought for $0.08 to $0.17 with shares at $12.91. This was clearly fresh buying, as open interest in the strike was a mere 239 contracts before the activity appeared.

Those calls traded for as much as $0.40 today, more than 3 times their average purchase price. The stock rose 6.04% at the same time, showing how quickly options can far outpace gains in their underlying shares.

It is the second winning trade in the name posted on Market Rebellion since Oct. 10.

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.

BBBY is up 4.52% to $13.65 in the final hour of trading today. KeyBanc upgraded the home-products retailer to “overweight” from “sector weight” with an $18 price target on Oct. 14 following the company’s appointment of a former Target (TGT) executive as CEO.