Bulls double money in $QURE

uniQure (QURE) has rallied sharply this month, returning large gains on upside option positions.

On April 12, Investitute’s proprietary programs flagged the purchase of 7,400 December $85 calls bought for $5.50 as part of a bullish roll with shares at $57.92. This was clearly a new position, as open interest in the strike was a mere 68 contracts before that session began.

Those calls traded for as much as $12 today, more than twice their purchase price. The stock surged 33.63% in the same time period, a large move but still 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.

QURE reached a session high of $78.94 in midday trading but pulled back in the afternoon to close at $77.44, off 0.73% on the day. Bloomberg reported on June 17 that the gene-therapy company is exploring options that could include a sale or partnerships.