$CPB bulls double their money

Option traders racked up profits today in Campbell Soup, one of the few bright spots in the market.

On Sept. 28, Investitute’s tracking systems detected the purchase of 10,000 February $40 calls for $1.25 with shares at $36.16. This was clearly fresh buying, as previous open interest in the strike was a mere 50 contracts.

Those calls traded for $3 today, nearly 2.5 times their purchase price. The stock rose 13.77% in the same time period, showing 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.

CPB jumped 5.46% today to close at $40.55 today. The food company bucked the broader market selloff after reporting earnings before the market opened this morning.