Call buyers in $CLDR score more profits

Cloudera (CLDR) has offered more profits to upside option traders today.

On Jun. 9, Market Rebellion’s Unusual Activity Service flagged the purchase of 7,500 June $10.50 calls for $0.30 to $0.85 with shares at $10.17. This was clearly fresh buying, as open interest in the strike was only 1,160 contracts before the activity appeared.

Those calls traded for as much as $2.40 today, at least 2.5 times their purchase prices. The stock rose 26.94% in the same time period, 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 the past 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.

CLDR ended up 9.61% to $12.72 today. The company is reportedly exploring a sale after receiving takeover interest per a Bloomberg report last week.