$UAA bulls run up profits

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

On Sep. 20, Market Rebellion’s Unusual Activity Service found that 5,900 Weekly $20.50 calls, expiring tomorrow, Sep. 24, were bought for $0.46 to $0.47 above the existing open interest of 9 contracts with shares at $20.47.

Those calls have traded up to $1.09 so far today, over double their purchase prices. The stock rose 5.18% in the same time, underscoring how quickly options can far outpace gains in their underlying shares on a relative basis.

This marks the second winning trade in the name to be posted on Market Rebellion in just over a week.

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 3.85% to $21.56 in afternoon trade.