$NET call prices triple

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

On Nov. 17, Market Rebellion’s Unusual Activity scanners identified the purchase of 2,000 Weekly $69 calls expiring today, Nov. 27, for $0.90 to $1.65 with shares at $64.94. This was clearly a new position, as volume was well above the strike’s previous open interest of 159 contracts.

Those calls traded for as much as $5.85 today, at least 3.5 times their purchase prices. The stock rose 15.31% 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 ended the session higher by 6.82% at $74.76, a new all-time closing high of for the web infrastructure and security company.