Bulls double money in $SE

Option traders have notched several wins in Sea Limited this year, and today was no exception.

On April 8, Investitute’s market scanners detected the purchase of 5,000 June $22.50 calls for $2.25 to $2.50 with shares at $22.68. Open interest in the strike was a mere 39 contracts before that session began, showing that this was a new position.

Those calls traded for as much as $4.90 today, more that twice their average purchase price. The stock rose 15.28% in the same time period, illustrating the kind of leverage that can be achieved 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.

It is the fifth winning trade in Sea since late February, when Investitute co-founder Pete Najarian cited unusual activity in the name on CNBC’s “Halftime Report.”

SE reached a session high of $26.94 this morning before pulling back with the rest of the market to close at $26.67, off 0.97% on the day. The Singapore-based digital entertainment, e-commerce, and financial-services company has rallied sharply since reporting quarterly results a week ago.