Bulls score giant gains in $W

Option traders have already made exponential gains on their money on long-dated call positions in Wayfair (W).

On Apr. 1, Market Rebellion’s proprietary Unusual Activity programs flagged the purchase of 2,000 January *2022* $80 calls for $9.80 with shares at $46.25.

Those calls traded for as much as $150.70 today, more than 15 times their purchase price. The stock has moved higher by 372.74% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

W ended the session lower by 0.92% at $208.06 after making a new high of $221.54 earlier in the session. The online home-goods retailer’s co-chair noted at the Oppenheimer Consumer Growth and E-Commerce Conference last Tuesday, Jun. 16, that quarter-to-date sales growth was at 90-plus percent.