$OLLI call prices surge sixfold

Bullish option traders rang up huge profits as Ollie’s Bargain Outlet hit record highs today.

On Aug. 13, Investitute’s market scanners identified the purchase of 2,000 September $75 calls for $2.31 as part of a bullish spread with shares at $72.30. This was clearly a new position, as open interest in the strike was only 147 contracts before that session began.

Those calls sold for $14 this morning, 6 times their purchase price. The stock rose 23.1% in the same time frame, a large move but nowhere near that of its options.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

OLLI reached an all-time high of $89.85 right after the opening bell but pulled back to close at $87.95, off 0.62% on the session. The discount retailer topped quarterly estimates and raised its outlook after the market closed yesterday.