Bulls score quick win in $PYPL

Option traders have nearly doubled their money on upside posiitons opened in PayPal (PYPL) less than two weeks ago.

On Nov. 7, our tracking systems showed that 2,500 Weekly $104 calls expiring on Nov. 29 were bought for $0.87 to $0.96 above open interest of 67 contracts with shares at $100.95. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $1.65 today, just shy of twice their initial purchase price. The stock rose 3.21% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name posted on Market Rebellion in less than a 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.

PYPL reached a session high of $104.20 this morning but pulled back to trade at $103.25 this afternoon, off 0.91% on the day.