$LB bulls ring register again

Option traders have doubled their money on upside positions in L Brands (LB) today for the second session in a row.

On Nov. 22, our Unusual Activity Service detected the purchase of 7,000 January $20 calls for $0.50 as part of a bullish roll with shares at $17.47. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls have traded for as much as $1.05 so far today, more than twice their purchase price. The stock rose 8.76% in the same time frame, underscoring how quickly options can far outperform their underlying shares.

It is the second winning trade in the name posted on Market Rebellion in as many days.

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.

LB is off 0.42% to $19.09 this morning. The retailer, whose brands include Victoria’s Secret and Bath & Body Works, reported earnings in line with expectations on Nov. 20 and has been the subject of reports involving a possible sale.