Bulls run up score in $FL intraday

It took less than an hour for option traders to double their money in Foot Locker (FL) today.

About 90 minutes into the session, Investitute’s tracking systems identified bullish option activity in two strikes at the same time: 4,000 July $43 calls were purchased for $0.39 to $0.50 above open interest of 1,674 contracts, while 4,000 July $44 calls were bought for $0.20 to $0.30 above open interest of 39 contracts. Shares were at $41.23 at the time.

Less than an hour later, the July $43 calls traded up to $0.90 and the July $44s to $0.55, respectively more than twice their average purchase prices. The stock rose less than 1.9% at the same time, showing how quickly options can far outpace gains in their underlying shares.

Investitute co-founder Pete Najarian cited the unusual activity on CNBC’s “Halftime Report” today.

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 2.09% to $42.06 today. The shoe retailer, which has been trading mostly sideways in the last month, is scheduled to report earnings before the market opens on Aug. 23.