Call buyers triple money in $SE

Sea Limited has rewarded bullish option traders for the third time in less than a week.

On April 29, Investitute’s tracking systems identified the purchase of 8,500 June $26 calls for $1.73 as part of a bullish roll with shares at $25.31. There was no open interest in the strike before the trade occurred, showing that it was a new position.

Those calls traded for as much as $5.10 today, about 3 times their purchase price. The stock rose 21.49% in the same time period, a large move but nowhere near that of its options on a relative basis.

It is the third winning trade in the name posted on Investitute since May 17. Investitute co-founder Jon Najarian cited the unusual activity in choosing Sea for his final trade on CNBC’s “Halftime Report” yesterday.

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.

SE opened at $31.10 but pulled back to close today at $30.59, down 2.89% on the session. On May 21, the Singapore-based digital entertainment, e-commerce, and financial-services company reported that quarterly active users reached 271.6M, up 114.4% from last year, while first-quarter revenue per user rose to $1.40 from $1.20 in the same period.