$NFLX bulls stream more gains

Bullish option positions opened in Netflix (NFLX) last month are rallying today as shares notch a new 52-Week high.

On Jun. 9, Market Rebellion’s Unusual Activity Service found that 8,000 November $360 calls were bought for $91.63 as part of a bullish roll with shares at $430.34. This was clearly fresh buying, as open interest in the strike was only 81 contracts before the activity appeared.

Those calls traded for as much as $200.00 today, more than double their purchase price. The stock rose 28.64% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name to be posted on Market Rebellion this week.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

NFLX made a new 52-Week high of $555.88 earlier in the session but has since pulled back, last up on the day by 7.27% at $544.66. Goldman Sachs this morning raised its price target on the shares to $670 from $540.