Bulls triple money in $KMB

Option traders turned big profits in Kimberly-Clark today thanks to a strong earnings report.

On Feb. 19, Investitute’s proprietary programs cited the purchase of 9,972 July $130 calls for $1.85 as part of a bullish roll with shares at $118.46. This was clearly a new position, as open interest in the strike was only 692 contracts before that session began. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls sold for as much as $5.90 today, more than 3 times their purchase price. The stock rose 11.74% in the same time period, underscoring how options can far outperform 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.

KMB jumped 5.42% to $130.25 today. The personal-care product giant topped first-quarter expectations this morning.