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Bullish options traders double their money in VF Corp. (VFC) on Monday, July 16, ahead of quarterly results due at the end of the week.

On July 10, Investitute's proprietary programs found that 7,000 Weekly $83.50 calls expiring on July 27 were purchased for $2.15 as part of a bullish spread with shares at $83.10. There was no open interest in the strike before the trade occurred, showing that it was a brand new position.

These buyers may have purchased those calls, betting that VFC shares would gain after the company's earnings report, increasing the value of their bullish option positions.

The 27July $83.50 calls traded for $5.80 Monday afternoon, more than 2.5 times their purchase price, in less than four trading sessions. The stock rose 6.8% in the same time frame, or phrased differently, the calls outperformed their underlying shares' return by a multiple of 25. This illustrates the kind of leverage that can be achieved with options.

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VF Corporation jumped 4.67% to $88.80 Monday, July 16, to a new all-time-high. The apparel company, whose brands include Nautica and Wrangler, was upgraded by JP Morgan that morning to "overweight" from "neutral" with a price target lifted to $105 from $85. The company is scheduled to report earnings Friday, July 20, before the market opens.

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 as the most that can be lost, is the price paid for the contract.

Contributed by Investitute. TheStreet has an affiliate partnership with Investitute.