Options News
$BBWI bulls score
Bath & Body Works Inc (BBWI) is trading higher after reporting earnings today, handing big profits to bullish option positions opened consecutive days this week. This past Tuesday and Wednesday, Market Rebellion’s Unusual Activity Service found that a collective 10,000 September $60 calls were bought for $2.95 to $3.70 with shares at $58.78 to $59.76. […]
Those calls traded for up to $7.29 today, about 2 times their purchase prices. The stock rose as much as 12.06% in the same time frame, showing how quickly options can far outpace gains in 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.
BBWI ended the session up 10.49% at $65.51 today. The specialty retailer beat top line earnings estimates after the close yesterday.