Bulls run up score in $FL

Bullish option traders doubled their money in Foot Locker (FL) today.

On Aug. 21, Market Rebellion’s Unusual Activity Service detected the purchase of 3,900 Weekly $28 calls expiring this Friday, Aug. 28, for $0.82 to $1.11 with shares at $27.70. This was clearly fresh buying, as open interest in the strike was just 270 contracts before the activity appeared.

Those calls traded for as much as $2.05 during today’s session, about double their purchase prices. The stock rose 7.91% in the same time period, illustrating how quickly options can far outperform moves 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.

FL was up 6.01% to $29.17 today. The shoe retailer beat earnings estimates before the market opened Friday.