$NKE call buyers keep scoring at highs

Bullish option traders have run up gains in Nike (NKE) today.

On Apr. 29, Market Rebellion’s Unusual Activity Service found that 3,000 August $140 calls were bought for $4.30 as part of a complex bullish spread above open interest of just 431 contracts with shares at $132.26.

Those calls traded for as much as $34.00 this session, nearly 8 times their purchase price. The stock rose 31.47% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

NKE closed today at $173.85, up 1.13% on the session after trading as high as $174.00. The iconic footwear brand is next estimated to report earnings on Sep. 27.