Call Traders Target Sea Stock After First Annual Profit

The tech name also shared a fourth-quarter revenue beat

Sea Ltd (NYSE:SE) stock is up 1% to trade at $52.02 at last check, after the tech name recorded its first annual profit and issued a strong outlook for 2024. A fourth-quarter revenue win thanks to 24% year-over-year growth and smaller-than-expected losses are boosting the shares as well.

While analysts are yet to chime in on the results, the options pits are already buzzing. So far today, 47,000 calls and 25,000 puts have crossed the tape, or seven times the intraday average volume. The most popular contract is the March 70 call, while new positions are also being bought to open open at the weekly 3/8 60-strike call.

SE out of the gate traded at its highest level since August, temporarily filling an Aug. 15 post-earnings bear gap of 28.7%. The shares have cooled off since then though, and ar eon track for an eighth-straight win. The stock has added more than 30% so far this year, with support from its 20-day moving average.

Today’s call bias is nothing new. The security’s 50-day call/put volume ratio of 3.70 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 89% of readings from the past year. This suggests options traders have been more bullish than usual in the last 10 weeks.

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