$THO calls turn gains overnight

It took just 24 hours for bullish option traders to post substantial gains in Thor Industries.

Just yesterday, Investitute’s market scanners identified the purchase of 5,954 June $125 calls for $6.70 as part of a bullish roll with shares at $116.16. This was clearly a new position, as open interest in the strike was only 99 contracts before the trade occurred.

Those calls sold for $10.90 this afternoon, a profit of more than 62% just one session later. The stock rose 8.4% at the same time, showing how quickly options can outperform their underlying shares.

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.

THO jumped 5.45% today to close at $126.95. The recreational-vehicle manufacturer beat quarterly estimates on the top and bottom lines after the market closed yesterday.