Bulls score more profits with $AZN

Good news in AstraZeneca (AZN) vaccine development is translating to big gains for upside option traders.

On Jun. 26, Market Rebellion’s Unusual Activity programs found that 13,800 August $65 calls were purchased for $0.55 to $0.70 with shares at $53.29. This was clearly a new position, as open interest in the strike was only 1,183 contracts before the activity appeared.

Those calls traded for up to $5.00 today, more than 7 times their purchase price. The stock rose 20.45% in the same time frame, underscoring the kind of leverage that can be obtained with options.

It is the second winning trade to be posted on Market Rebellion in the past week.

Long calls lock in the price where the stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

AZN was down 3.98% today to close at $58.68 after trading up as high as $64.94 earlier in the session, a new high for the shares. The pharmaceutical company was mentioned positively by researchers that stated that its COVID-19 vaccine being studied by the Oxford Vaccine Group, “showed an acceptable safety profile.”