$SE bulls double their money

Bullish option traders are logging big profits in Sea Limited (SE) for the second time in less than a week.

On Nov. 14, our Unusual Activity Service identified the purchase of 15,000 December $40 calls for $0.45 above open interest of 7,785 contracts with shares of at $35.70. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $1.03 today, more than twice their purchase price. The stock rose 5.55% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the third winning trade in the name posted on Market Rebellion since Nov. 12.

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.

SE is up 1.18% to $36.81 this afternoon. The Singapore-based digital entertainment, e-commerce, and financial-services company topped quarterly expectations on Nov. 12.