$BBBY calls post another win

Bullish option traders have been racking up gains in Bed Bath & Beyond (BBBY) for weeks, and today they doubled their money on another position opened only a few sessions ago.

On Oct. 21, Market Rebellion’s tracking systems detected the purchase of 5,614 December $14 calls for $0.72 with shares at $12.93. There was no open interest in the strike before the trade occurred, showing this this was a new position.

Those calls traded for as much as $1.52 today, more than twice their purchase prices. The stock rose 12.68% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

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

BBBY is up 0.98%to $14.46 entering the final hour of trade 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.