$LULU calls triple overnight

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

Yesterday morning on Apr. 27, Market Rebellion’s unusual tracking systems found that 3,300 Weekly $230 calls expiring on Friday, May. 1, were bought for $0.87 to $1.56 above open interest of 1,706 contracts with shares at $218.70.

Those calls have traded for as much as $5.25 so far today, more than 3 times their purchase prices. The stock rose 5.85% 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 opened to trade as high as $231.95 but has since pulled back with the broader market, last off 0.51% at $225.74. The athletic-apparel retailer has rebounded sharply from its March lows as its online sales have remained open.