Option bulls score in $PYPL

Option traders have scored in upside positions opened in PayPal (PYPL) last month.

On Aug. 16, Market Rebellion’s Unusual Activity Service found that 4,185 October $67.50 calls were bought for $3.85 as part of a bullish roll above the existing open interest of 2,754 contracts with shares at $68.20.

Those calls traded for as much as $11.55 today, a 200% return, while the stock rose 15.31% in the same time period, underscoring how options can far outperform their underlying shares.

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.

PYPL was last up 0.85% at $77.42.