Bulls triple money in $SKX

Option traders scored big profits today on upside positions in Skechers USA (SKX) for the second time this week.

On July 16, Investitute’s tracking systems detected the purchase of 4,100 August $37 calls for $1.35 to $1.40 above open interest of 487 contracts as part of a bullish roll with shares at $34.30. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $4 today, about 3 times their average purchase price. The stock rose 17.93% in the same time frame, showing how quickly options can far outperform their underlying shares.

It is the second winning trade in the name posted on Investitute since Tuesday.

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.

$SKX is up 13.32% to $39.48 in midday trading. The shoe retailer beat estimates on the top and bottom lines after the market closed yesterday.