$ARRY option bulls score big gains

Bullish option traders are racking up huge profits in Array Biopharma (ARRY) today.

On Jun. 27, Market Rebellion’s Unusual Option Activity Service found that 4,000 September $15 calls were bought for $1.14 to $1.25 as part of a complex bullish spread with shares at $13.12. This was clearly fresh buying, as open interest in the contract was just 70 before the activity appeared.

Those calls have traded for as much as $8.10 this session, at least 6 times their purchase prices. The stock gained 73.93% at the same time, a large move but nowhere near that of its options on a relative basis.

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.

ARRY was last higher on the day by 24.99% at $22.88.