$TPR bulls double money in hours

Bulls who opened upside option positions in Tapestry (TPR) fewer than two hours ago are already nearly doubling their money.

Just this morning, Market Rebellion’s Unusual Activity Service found that 5,000 Weekly $41 calls, expiring next Friday, Jun. 11, were bought for $0.95 to $1.15 with shares at $41.10. This was clearly fresh buying, as open interest in the strike was just 2 contracts before the activity appeared.

Those calls traded for as much as $1.95 today, nearly double their purchase prices. The stock rose 34.79% in the same time frame, underscoring how quickly options can far outpace gains in 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.

TPR was down 0.38% to $42.37, off its earlier session lows of $40.88. The luxury fashion company is next expected to report earnings on Aug. 19 before the open.