Bulls score in $PYPL

Option traders have tripled their money on upside positions opened in PayPal (PYPL) just two weeks ago.

On Jan. 8, our Unusual Activity tracking systems showed that 2,200 Weekly $111 calls expiring on Jan. 24, this Friday, were bought for $1.65 to $1.93 above open interest of 1,121 contracts with shares at $110.57.

Those calls have so far traded for as much as $6.50 today, more than 3 times their purchase prices. The stock rose 6.24% in the same time frame, 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.

PYPL is up 1.37% at $117.08 this afternoon and will report earnings on Jan. 29 after the market closes.