$YETI bulls pack in profits

It took just over a week for option traders to post exponential gains on upside options in YETI Holdings (YETI).

On Nov. 18, Market Rebellion’s Unusual Activity scanners identified the purchase of 3,000 Weekly $60 calls expiring today, Nov. 27, for $0.83 to $1.01 with shares at $57.65. This was clearly a new position, as volume was well above the strike’s previous open interest of 31 contracts.

Those calls traded for as much as $4.30 today, at least 4 times their purchase prices. The stock rose 11.62% in the same time frame, a large move in such a short time frame but nothing like that of its 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.

YETI was up 0.86% to close at $64.18 this afternoon, a new all-time closing high for the lifestyle brand.