$DDOG bulls score at highs

Datadog (DDOG) is trading at new highs today a week after earnings, handing more profits to bullish option positions.

This past Wednesday, Aug. 11, Market Rebellion’s Unusual Activity Service found that 3,500 Weekly $130 calls, expiring today, were bought for $0.65 to $1.22 above open interest of 738 contracts with shares at $126.32.

Those calls have traded for up to $7.23 so far today, at least 5 times their purchase prices. The stock rose 8.58% in the same time frame, showing how quickly options can far outpace gains in their underlying shares.

This marks the second winning trade in the name to be posted on Market Rebellion in the last week.

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.

DDOG was last up 5.50% to $137.44 today. The cloud monitoring service topped quarterly earnings expectations last Thursday.