$NET bulls make fast gains

Bullish option traders are making fast gains on their upside positions in Cloudflare (NET) today.

Yesterday morning on Jun. 17, Market Rebellion’s Unusual Activity scanners identified the purchase of 8,300 July $37 calls for $1.14 to $1.70 with shares at $33.32. This was clearly a new position, as volume was well above the strike’s previous open interest of 183 contracts.

Those calls have traded for as much as $3.40 so far today, more than double their purchase prices. The stock rose 11.64% 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 1.12% at $36.20, retreating from a new all-time high of $37.29 made earlier in the session by the web infrastructure and security company.