$SFIX bulls double their money

Option traders turned fast profits on upside positions in Stitch Fix (SFIX) today.

On Dec. 8, Market Rebellion’s proprietary programs flagged the purchase of 3,700 Weekly $55 calls expiring today for $1.00 to $3.36 with shares at $50.91. This was clearly fresh buying, as open interest in the strike was a mere 326 contracts before that session began.

Those calls traded up to $5.45 today, about double the average of their purchase prices. The stock rose 19.03% in the same time period, a huge move but still far below that of its options on a relative basis.

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.

SFIX was up at the close by 1.44% at $60.06. The online-clothing retailer topped earnings expectations on Monday.