$TEAM bulls collaborate for gains

Option traders are making huge profits in Atlassian (TEAM) today.

On Oct. 15, Market Rebellion’s Unusual Activity Scanners found that 3,000 Weekly $190 calls expiring on Oct. 30 were bought for $9.00 to $9.50 with shares at $188.41. This was clearly fresh buying, as open interest in the strike was only 2,658 contracts before that session began.

Those calls have traded for as much as $28.00 so far today, about 3 times their purchase prices. The stock rose 14.72% in the same time frame, a large move but nowhere near that of its options on a relative basis.

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.

TEAM was last up by 1.22% to $215.54 today. The software company made a new all-time high of $216.30 earlier this session and will report earnings on Oct. 29.