Bulls double money in $ANF

Abercrombie & Fitch (ANF) paid off on upside option positions today for the third time in less than two weeks.

On Oct. 28, our tracking systems detected the purchase of 2,500 November $18 calls for $0.32 above open interest of 1,760 contracts as part of a bullish roll with shares at $16.84. Market Rebellion co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls have traded for as much as $0.65 so far today, more than twice their purchase price. The stock rose 3.86% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the third winning trade in the name posted on Market Rebellion since Oct. 18.

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.

ANF reached $17.52 earlier today before pulling back to $16.98, off 2.64% on the session. Quarterly results for the retailer are estimated for Nov. 29 before the market opens.