$CROX bulls score fast money

Option traders are posting quick gains in upside positions on Crocs (CROX).

On Feb. 6, Market Rebellion’s Unusual Activity Service found that 8,100 February $105 calls were bought for $3.04 to $3.74 with shares at $98.08. This was clearly fresh buying, as open interest in the strike was just 461 contracts before the activity appeared.

Those calls traded up for $7.44 today, a 98.93% return, while the stock rose 12.5% 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.

CROX was up 23.89% to close at $110.05 this afternoon.