Bulls triple their money in $ADBE

Bulls tripled their money in upside option positions on Adobe (ADBE) today.

On Oct. 19 , Market Rebellion’s activity scanners identified the purchase of 6,700 November $260 calls, expiring today, for $10.52 to $10.88 as part of a bullish spread with shares at $262.80. This was clearly a new position, as open interest in the strike was only 207 contracts before the trade occurred.

Those calls are marked as of the time of this writing for $34.40, more than 3 times their original purchase prices. The stock rose 12.09% in the same time period, an impressive move but nowhere near the gains in its options.

It is the second winning trade in the name to be posted on Market Rebellion in as many weeks.

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.

ADBE gapped higher to open at $296.54 this morning but has since pulled back to $294.61, still up 0.027% on the day. The software maker held its financial analyst meeting on Nov. 4 and will report earnings after the close of the market on Dec. 12.