Option bulls score in $PYPL

Option traders have scored on upside positions opened in PayPal (PYPL) just one week ago.

On Jul. 27, our Unusual Activity tracking systems showed that 7,526 August $180 calls were bought as part of a complex bullish spread for $7.60 above open interest of 2,851 contracts with shares at $177.40.

Those calls traded for as much as $20.40 today, more than 2.5 times their purchase price. The stock rose 12.31% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

PYPL ended up 0.51% at $197.07 this afternoon, a new closing high, after topping earnings expectations after the closing bell last Wednesday, Jul. 29.