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Traders make swift and sweet profits in this stock

Goodyear Tires beat earnings estimates in their Wednesday morning report, leading shares to open sharply higher. And that's good news for the many options traders who bought bullish call options on the company ahead of time, allowing them to double their money in less than 24 hours.

As the stock rose on Tuesday on the eve of the earnings report, options traders looked out to January, buying the January 23-strike calls for about $1 per share. With more than 5,000 of the calls trading, they were the most popular options on a day that saw more than six times the average daily call volume.

Share prices of Goodyear were up more than 7.5 percent Wednesday morning.

Read MoreTraders bet that this retailer is about to fall

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

That was good news for those who traded those January 23-strike options on Tuesday, as their value rose from less than $1 to nearly $2, making for a swift and especially sweet profit.

And because those options don't expire until January, there's still time for the traders to cash in further. Above and beyond their earnings, persistently low oil prices could help the company, said Mike Khouw of Dash Financial.

"Oil prices make up two-thirds of their raw material costs," Khouw said Wednesday on CNBC's "Fast Money." "So lower oil prices could be a big positive, moving forward, for Goodyear."

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    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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