$NKE option bulls keep running up profits

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

On Nov. 3, Market Rebellion’s Unusual Activity Service found that 2,400 Weekly $175 calls, expiring today, were bought for $0.16 to $0.38 above open interest of just 1,908 contracts with shares at $169.02.

Those calls traded for as much as $4.10 this session, over 10.5 times their purchase prices. The stock rose 5.92% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

This marks the second winning trade in the name posted on Market Rebellion in as many sessions.

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.

NKE finished at $177.51, up 1.28% on the session.