$ALXN call prices triple in days

Option traders racked up huge profits today on bullish positions opened in Alexion Pharmaceuticals only two sessions earlier.

On Tuesday, Investitute’s proprietary programs flagged the purchase of 2,500 May $110 calls in one print for $4.30 as part of a bullish spred with shares at $106.49. Volume was above the strike’s open interest of 1,695 contracts, showing that this was a new position.

Those calls surged to $13.20 today, more than 3 times their purchase price. The stock rose 15% in the same time frame, underscoring how quickly options can far outperform 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.

ALXN jumped 14.5% to $121.42 today. The pharmaceutical company rallied after reporting strong quarterly results and positive developments in new drugs this morning.