$LULU calls double in two days

Option traders are posting quick profits today on bullish positions in Lululemon (LULU).

On Sept. 10, Market Rebellion’s tracking systems found that 5,700 Weekly $200 calls expiring on Sept. 27 were bought for $2.05 to $2.47 above open interest of 94 contracts with shares at $193.07. Market Rebellion co-founder Pete Najarian cited the unusual activity at that time in making LULU his final trade on CNBC’s “Fast Money” program.

Those calls have traded for as much as $5.36 so far today, about 2.5 times their average purchase price. The stock rose 4.24% 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.

LULU is up 2.17% to $200.66 this morning. The athletic-apparel retailer beat earnings and revenue estimates on Sept. 5.