$GIII bulls double money overnight

Option traders are turning quick profits on short-duration bullish positions opened in G-III Apparel Group (GIII) yesterday.

Yesterday afternoon on Nov. 18, our Unusual Option Activity Service showed that 2,500 November $20 calls were bought for $0.45 as part of a bullish combo, selling an equivalent number of downside November $15 puts for $0.35, with shares at $19.98. Volume was well above above the call strike’s previous open interest of just 24 contracts, showing that these were new positions.

Those calls were last marked for $1.05, more than double their purchase price. The stock rose 5.56% in the same time frame, underscoring how quickly 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.

GIII is up 4.61% to $21.09 today. The apparel retailer is up this session, alongside its peers, and is estimated to next report earnings on Dec. 2.