$SFIX bulls double their money overnight

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

Yesterday morning on Oct. 13, Market Rebellion’s proprietary programs flagged the purchase of 4,600 Weekly $32 calls expiring on Oct. 23 for $0.89 to $1.10 with shares at $31.13. This was clearly fresh buying, as open interest in the strike was a mere 274 contracts before that session began.

Those calls have traded up to $2.08 today, about double their purchase prices. The stock rose 7.1% 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 to a new high of $33.34 this morning but has pulled back with the broader market, last down 1% to $32.53 in late trade today. The online-clothing retailer is estimated to next report earnings on Dec. 14.