$LULU calls triple in days

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

On Dec. 20, Market Rebellion’s tracking systems found that 4,100 Weekly $230 calls expiring on tomorrow, Dec. 27, were bought for $0.58 to $1.45 above open interest of 1,396 contracts with shares at $226.38. Market Rebellion co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls have traded for as much as $3.50 so far today, more than 3 times their average purchase prices. The stock rose 2.97% 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 1.56% to $232.60 in midday trading. The athletic-apparel retailer beat earnings and revenue estimates while also raising its fiscal year outlook on Dec. 11.