$UAA bulls run quick profits

Bullish option traders are running up profits in their positions in Under Armour (UAA) today.

On Sep. 8, Market Rebellion’s Unusual Activity Service found that 8,000 Weekly $22.50 calls, expiring tomorrow, Sep. 10, were bought for $0.18 to $0.27 above the existing open interest of 137 contracts with shares at $22.19.

Those calls have traded up to $0.76 so far today, over double their purchase prices. The stock rose 4.69% in the same time, underscoring how quickly options can far outpace gains in their underlying shares on a relative basis.

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.

UAA was last up 4.89% to $23.28 in afternoon trade.