$YETI bulls triple money

It took just one session for option traders to post exponential gains on upside options in YETI Holdings (YETI).

On Jan. 17, Market Rebellion’s Unusual Activity Service identified the purchase of 4,000 Weekly $34 calls expiring on Feb. 7 for $1.00 to $1.30 with shares at $9.03 to $33.14. This was clearly fresh buying, as open interest in the strike was just 72 contracts before the activity appeared.

Those calls have traded for as much as $3.88 so far today, more than 3 times their average purchase price. The stock rose 11.77% in the same time frame, illustrating the kind of leverage that can be achieved quickly 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.

YETI is up 4.55% to $35.81 this afternoon. The lifestyle brand was noted by Dealreporter this morning as a potential target if VF Corp. (VFC) were to look for a transformative deal.