$ADAP bulls double money

Bullish option traders in Adaptimmune Therapeutics PLC (ADAP) are doubling their money today.

On Aug. 26, Market Rebellion’s Unusual Activity Service found that 3,000 September $5 calls were bought for $0.85 to $0.90 as part of a bullish spread with shares at $5.11.

Those calls sold for $1.85 this afternoon , more than 2 times their purchase prices. The stock rose 31.12% in the same time frame, showing how quickly options can far outpace 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.

ADAP was up 28.95% to close at $6.37 today. The clinical-stage biopharmaceutical company announced this morning that it has entered into a strategic collaboration and license agreement with Roche’s ($RHHBY) Genentech to develop and commercialize allogeneic cell therapies to treat multiple oncology indications.