$TIF call prices skyrocket 14-fold

Bullish option traders racked up enormous gains in Tiffany today as shares surged on strong quarterly numbers.

On Monday, Investitute market scanners found that 1,500 Weekly $107 calls expiring this Friday were purchased for $1.23 to $1.30 as part of a bullish spread with shares at $103.47. This was clearly a new position, as open interest in the strike was a mere 55 contracts before the trade occurred.

Those calls sold for $18.19 today, more than 14 times their purchase price. The stock rose 20.1% in the same time frame, underscoring how options can far 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.

TIF spiked higher by 23.29% to close at $126.05 today, not far from a lifetime high of $126.64 reached just minutes earlier. The iconic jeweler blew away earnings estimates and raised its outlook this morning.