$NKE option bulls running up profits

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

On Mar. 16, Market Rebellion’s Unusual Activity Service found that 2,000 Weekly $135 calls, expiring this Friday, were bought for $2.10 above open interest of just 579 contracts with shares at $125.29.

Those calls traded for as much as $5.50 this session, over 2 times their purchase price. The stock rose 10.92% in the same time frame, illustrating the kind of leverage that can be achieved quickly 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.

NKE was last at $133.86, up 2.95% on the session.