Bulls roam aisles in $TJX

Option traders are ringing up profits today on upside positions opened in TJX (TJX) less than three weeks ago.

On Oct. 28, Market Rebellion’s Unusual Activity Service found that 5,000 November $66 calls, expiring this Friday, were bought for $1.31 to $1.34 as part of a bullish spread and roll above the existing open interest of 1,017 contracts with shares at $65.08.

Those calls traded for as much as $10.46 this session, more than 7.5 times their purchase prices. The stock rose 17.56% in the same time period, illustrating the kind of leverage that can be achieved 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.

TJX was last up by 6% today at $73.70.