$BBBY bulls score quick profits

Option traders are cashing in on bullish positions in Bed Bath & Beyond (BBBY) today.

On Jun. 24, Market Rebellion’s Unusual Activity Service flagged the purchase of 4,250 Weekly $9.50 calls bought for $0.26 to $0.41 with shares at $9.31. Open interest in the strike was only 300 contracts before the trade occurred, showing that this was a new position.

Those calls traded up to $0.99 today, at least double their purchase prices. The stock rose 12.57% in the same time period, illustrating how options can far outperform moves in their underlying shares on a relative basis.

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 4.8% to $9.93 this afternoon after touching as high as $10.56 earlier in the day. The home-products retailer’s stock price target was raised to $14.50 from $12.50 this morning at BofA.