Call buyers win again in $AMRN

Bullish option traders have tripled their money on upside positions opened in Amarin (AMRN) only a few days ago.

On July 2, Investitute’s proprietary programs flagged the purchase of 2,400 August $23 calls for $0.84 to $1.20 with shares at $21.49. Volume was well above the strike’s previous open interest of 906 contracts, showing that this was fresh buying.

Those calls traded for as much as $2.59 today, 3 times their initial purchase price. The stock rose 10.94% in the same time frame, underscoring how quickly options can far outperform their underlying shares.

It is the third winning trade in the name posted on Investitute in as many sessions.

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 was up 1.31% to $23.16 today. The drug maker raised guidance Thursday after announcing expanded commercialization plans for its Vascepa treatment of cardiovascular disease.