Nautilus Inc. comes out of right field

Yesterday shares of Nautilus, Inc. (NYSE:NLS) jumped 31% to $6.77 on volume of 1 million shares shares, more than 3 times their daily average over the past 30 days. This all happens a week later after the earnings call on May 5th?  What, what, what!??

Nautilus had reported after the May 5 close a wider-than-expected fiscal first-quarter loss but revenue that topped expectations, launched a $10 million stock buyback program and said it would pay $8 million to a supplier to settle claims of a termination agreement.

But the stock didn't move, not until a week later?

Nautilus Inc.

6.32  -0.33

Check out the dive in shares over the last year, down 70% before the jump yesterday:

Nautilus Inc.

6.31  -0.34

So the question is Masters, can you still play it, can you make more money from the stock or options?

Yesterday the June $7.50 strike call had 438 contracts traded.The next stop is down, today shares are already down 5% and check out all the bets placed on the $5 Calls:

Expires Symbol Last Chg Bid Ask Vol Open Int May 08 NLSEA.X 1.30 0.00 1.30 1.50 90 1,157 Jun 08 NLSFA.X 0.99 0.00 1.50 1.70 52 1,476 Jul 08 NLSGA.X 1.70 0.15 1.65 2.00 10 2,342 Oct 08 NLSJA.X 2.40 0.00 2.00 2.45 20 627 Jan 09 NLSAA.X 2.60 0.05 2.30 2.60 30 5,476 Jan 10 YATAA.X 2.50 0.00 2.85 3.50 4 232

WARNING: NLS has already surpassed the recent analyst price targets:

Last week Reed Anderson of D.A. Davidson said in a client note that Nautilus' sale of Pearl iZumi sportswear and initial cost cutting efforts have strengthened its balance sheet, putting the owner of fitness equipment brands StairMaster and Bowflex in position to possibly finish the year with little or no debt and positive cash flow. Anderson raised his rating to "Buy" from "Neutral" and lifted his price target to $7 from $4.25.

Wedbush Morgan Securities' Rommel Dionisio was also pleased with sales, saying the company's brand strength, Bowflex equipment and international operations helped its performance.  The analyst reiterated a "Buy" rating and $6 price target.

With the stock now in the high $6 range, expect short-term investors to take their gains.  Wait to get in on this stock.  Once it comes back down and if the Nautilus, Inc. plan for success is still in check, place your bet, but don't do it above $6.

Discliamer: No positions in NLS.