$BURL bulls double money

Option traders are posting large profits on upside positions opened in Burlington Stores (BURL) less than two weeks ago.

On Nov. 15, Market Rebellion’s Unusual Activity Service found that 2,500 Weekly $210 calls expiring this Friday were bought for $7.80 as part of a bullish spread with shares at $207.33. Open interest in the strike was a mere 14 contracts before the trade occurred, showing that it was a new position.

Those calls have traded for as much as $18.50 so far today, almost 2.5 times their purchase price. The stock rose 9.75% in the same time frame, underscoring how quickly 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.

BURL reached $229.96 in early trade before pulling back to $225.79 this morning, off 0.08% on the session so far. The apparel retailer beat earnings estimates and raised its outlook before the market opened yesterday.