$BIIB call buyers score at highs

Biogen (BIIB) is trading to a new all-time-high today, handing significant profits to upside option positions.

On May 10, Market Rebellion’s Unusual Activity programs found that 2,000 June $320 calls were bought for $18.00 as part of a bullish spread, above the existing open interest of 1,161 contracts, with shares at $276.44.

Those calls have traded for as much as $146.98 today, over 8 times their purchase prices. The stock gained 67.73% at the same time, a huge move but still nowhere near that of its options on a relative basis.

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.

BIIB rose to a new all-time-high of $468.55 earlier and was trading last at $415.04, up 45.05% on the day. The FDA approved Biogen’s Aduhelm for Alzheimer’s disease today.