Bulls double money in $SE

Option traders continue to chalk up wins in Sea Limited.

On Feb. 28, Investitute’s tracking systems detected the purchase of 10,000 May $22.50 calls $1.75 and $1.80 as part of a bullish roll with shares at $21.09. This was clearly a new position, as open interest in the strike was only 580 contracts before the trade occurred. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls sold for $3.91 today, more than twice their purchase prices. The stock rose 18.78% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the fourth winning trade in the name posted on Investitute in less than a week.

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.

SE was up 4.56% to $24.06. The Singapore-based digital entertainment and financial-services company has rallied sharply since reporting quarterly results a week ago.