$NKE call buyers run up gains at highs

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

On May 7, Market Rebellion’s Unusual Activity Service found that 5,000 July $145 calls were bought for $3.75 as part of a bullish spread above open interest of just 3,319 contracts with shares at $138.81.

Those calls traded for as much as $13.20 this session, over 3.5 times their purchase price. The stock rose 14.29% 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 $158.00, up 2.27% on the session after trading as high as $158.21. The iconic footwear brand has seen its shares rally since topping earnings estimates last week in its quarterly report.