$NET bulls flip fast gains

Bullish option traders have nearly doubled their money on upside positions in Cloudflare (NET).

Yesterday afternoon on Mar. 30, Market Rebellion’s Unusual Activity scanners identified the purchase of 2,330 April $22.50 calls in one print for $2.30 with shares at $23.74. This was clearly a new position, as volume was well above the strike’s previous open interest of 849 contracts.

Those calls have traded for as much as $4.20 so far today, nearly double their purchase price. The stock rose 10.28% in the same time frame, a large move in such a short time frame but nothing like that of its options.

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.

NET was last up on the session by 2.55% at $24.52, retreating from a new all-time high of $26.28 made earlier in the session by the web infrastructure and security company.