$EXPR bulls score again

Express (EXPR) popped higher today after its earnings report, turning quick profits on upside option positions.

On Mar. 8, Market Rebellion’s Unusual Activity Service found that 2,800 March $5 calls were bought for $0.25 to $0.30 with shares at $2.74. This was clearly fresh buying, as open interest in the strike before the activity appeared was just 1,060.

Those calls have traded for as much as $1.60 today, at least 5 times their purchase prices. The stock rallied 97.81% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the name to be posted by Market Rebellion this week.

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.

EXPR hit an intraday high of $5.44 earlier and was last at $4.48, up 32.54% on the session. The apparel retailer beat earnings estimates in its quarterly report this morning.