Bulls triple money in $SE

Sea Limited (SE) is trading near all-time highs, yielding exponential profits on upside option positions.

On June 6, Investitute’s proprietary programs flagged the purchase of 9,000 July $30 calls for $1.54 to $1.75 with shares at $29.74. This was clearly fresh buying, as open interest in the strike was only 526 contracts before that session began.

Those calls traded for as much as $4.65 today, 3 times their initial purchase price. The stock rose 15.37% in the same time frame, illustrating how options can far pace gains in their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

SE climbed to $34.53 this morning but has pulled back to $34.34 approaching the closing bell, down 0.29% on the session. The Singapore-based digital entertainment, e-commerce, and financial-services company has rallied sharply since reporting strong user numbers in mid-May and reached a 52-week high of $34.75 yesterday.