$NKE option bulls triple money

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

On Oct. 8, Market Rebellion’s Unusual Activity Service found that 3,100 Weekly $150 calls, expiring next Friday, were bought for $4.15 to $4.50 above open interest of just 431 contracts with shares at $150.36.

Those calls traded for as much as $14.25 this session, nearly 8 times their purchase price. The stock rose 9.18% 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 closed today at $163.48, up 0.8% on the session.