$UAA bulls double money

Option traders are scoring big on upside positions in Under Armour (UAA) for the second time in as many weeks.

On Oct. 10, Market Rebellion’s activity scanners found that 5,000 Weekly $21 calls expiring on Nov. 1 were bought for $0.30 to $0.32 with shares at $19.92. This was clearly fresh buying, asabove open interest of 430 contracts. Stock 19.92. Follows 11October 19.50 call buying in previous session.

Those calls traded for as much as $0.63 so far today, more than twice their average purchase price. The stock rose 6.33% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name posted on Market Rebellion since Oct. 9.

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.

UAA is up 5.7% to $21.24 this afternoon. The athletic-apparel retailer rallied after announcing this morning that founder Kevin Plank is stepping down as CEO.