$QRTEA bulls ring the register

Bullish option traders are ringing the register today with big profits in Qurate Retail (QRTEA).

On Jul. 28, Market Rebellion’s proprietary programs flagged the purchase of 3,500 August $11 calls for $0.55 to $0.79 with shares at $10.08. This was clearly fresh buying, as open interest in the strike was only 29 contracts before the trades occurred.

Those calls have changed hands for as much as $1.59 so far today, at least double their purchase prices. The stock rose 23.91%, illustrating the kind of leverage that can be achieved 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.

QTREA is marginally down 0.087% to $11.54 in midday trade after reaching as high as $12.54 earlier this morning. The company, which comprises a group of curated retail businesses, reported better than expected earnings after the closing bell yesterday, topping its top and bottom lines.