Bulls book another ride with $UBER

Option traders turned big profits again on upside positions in Uber (UBER) today.

On Dec. 26, Market Rebellion’s Unusual Activity Service found that 2,800 February $33 calls were bought for $1.10 to $1.18 with shares at $30.29. Open interest in the strike was only 134 contracts before the trades occurred, indicating that this was new positioning.

Those calls traded for as much as $8.00 today, or almost 8 times their purchase prices. The stock rose 35.13% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the third winning trade in the name to be posted on Market Rebellion in the past month.

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.

UBER was last at $40.30, up 8.69% on the session. The ride-sharing service reported earnings yesterday evening, beating estimates on its top and bottom lines.