$AMRN bulls double money

Option traders have run up big gains on upside positions in Amarin (AMRN) today for the second session in a row.

On Sept. 4, Market Rebellion’s tracking systems detected the purchase of 3,000 March $20 calls in one print for $2.40 with shares at $15.18. This was clearly a new position, as open interest in the strike was 1,418 contracts before the trade occurred.

Those calls have changed hands for as much as $5.03 so far today, more than twice their purchase price. The stock rallied 44.33% inthe same time period, a huge move but still far lower than that of its options on a relative basis.

It is the second winning trade in the name posted on Market Rebellion in as many days.

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.

AMRN is up 2.91% to $21.55 in afternoon trading. Documents released by a Food and Drug Administration committee yesterday morning said the pharmaceutical company’s fish-oil pill Vascepa has a “favorable benefit/risk profile” in cardiovascular treatments.