$NKE bulls quadruple money

It took less than a week for upside option traders to reap huge profits in Nike.

On Monday, Investitute’s tracking systems found that 5,600 Weekly $72 calls expiring on June 29 were purchased for $1.88 to $2.28 with shares at $72.43. These were clearly new positions, as open interest in the strike was only 243 contracts before the trades occurred.

Those calls sold for $8.92 this morning, more than 4.5 times their initial purchase price. The stock rose 11.71% in the same time frame, underscoring how 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.

NKE spiked higher by 11.13% to $79.68 today. The athletic-apparel retailer surged after topping quarterly estimates and raised guidance last night, with surprisingly strong numbers in North America.