$AMRN bulls score 8-fold gains

Amarin (AMRN) turned big profits on upside option positions today for the second session in a row.

Just yesterday, Investitute’s tracking systems found that 4,700 Weekly $21.50 calls expiring this Friday were bought for $0.12 to $0.44 above open interest of 135 contracts with shares at $21.46. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as muchas $2.25 today, 8 times their average purchase price. The stock rose 10.62% at the same time, underscoring how quickly options can far outperform their underlying shares.

It is the second winning trade in the name posted on Investitute in less than 24 hours.

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 spiked to a 52-week high of $23.79 this morning before ending the session at $22.86, still up 2.19% on the session. The drug maker raised guidance yesterday after announcing expanded commercialization plans for its Vascepa treatment of cardiovascular disease.