Thor bulls hammer out big gains

Upside positions in Thor Industries yielded exponential returns today thanks to strong quarterly numbers.

On April 17, Investitute’s tracking systems detected the purchase of 5,672 June $100 calls for $1.85 with shares at $89.94. Volume was well above the strike’s open interest of 2,174 contracts, showing that this was a new position.

Those calls sold for $7.71 this morning, representing a profit of more than 300 percent. The stock rose less than 16.8 percent in the same period, underscoring the kind of leverage that can be achieved through options.

Long calls lock in the price where the 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.

THOR jumped 10.11 percent today to close at $104.26. The recreational-vehicle maker exceeded expectations on the top and bottom lines before the market opened.