$TUP bulls unseal big gains

Option traders have doubled their money on upside positions opened in Tupperware (TUP) a month ago.

On Dec. 17, Market Rebellion’s Unusual Activity Service flagged the purchase of 6,800 January $7.50 calls for $0.52 to $0.95 with shares at $7.89. This was clearly fresh buying, as open interest in the strike was only 413 contracts before that session began.

Those calls have traded for as much as $1.70 so far today, more than twice their average purchase price. The stock rose 15.08% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

TUP is up 11.15% to $8.97 this afternoon. The kitchen-storage products icon is up sharply since reaching a 52-week low of $7.16 on Dec. 11.