Calls sprint higher with $NKE

Option traders doubled their money on bullish positions in Nike (NKE) today.

On Sept. 16, Market Rebellion’s tracking systems showed that 2,100 Weekly $84 calls expiring this Friday were bought for $4.14 to $4.55 with shares at $87.07. This was clearly fresh buying, as open interest in the strike was only 75 contracts before that session began. Stock 87.07.

Those calls traded for as much as $8.70 this morning, twice their average purchase price. The stock rose 6.47% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

NKE is up 4.49% to $91.09 this afternoon after hitting an all-time high of $92.79 in early trading. The athletic-apparel giant topped earnings and sales estimates after the market closed yesterday.