$ASO bulls score at highs

A bullish option position opened in Academy Sports & Outdoors Inc (ASO) one month ago is turning gains today.

On Aug. 10, Market Rebellion’s Unusual Activity Service found that 2,500 September $36 calls were bought for $2.15 as part of a bullish spread with shares at $34.55.

Those calls sold for $9.75 this session, more than 4.5 times their purchase price. The stock rose 32.24% 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.

ASO was last up 3.49% at $45.61 today. The sporting and recreational goods retailer topped earnings estimates yesterday while also announcing a newly authorized $500 million share repurchase program.