$FTCH option bulls triple money

Bullish option traders posted solid gains today on upside positions opened in Farfetch (FTCH) last month.

On Oct. 20, Market Rebellion’s Unusual Activity Service found that 12,250 November $45 calls were bought for $0.98 to $1.36 above open interest of just 4,668 contracts with shares at $39.04.

Those calls have traded up to $3.55 today, about 3 times their purchase prices. The stock rose 17.65% in the same time frame, illustrating the kind of leverage that can be achieved through options.

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.

FTCH was last at $45.97, lower by 0.82%.