$FLDM bulls make fast profits

It has taken less than one hour for option traders to post fast profits on upside options in Fluidigm (FLDM).

Just a short while ago, Market Rebellion’s Unusual Activity Service identified the purchase of 3,000 August $7.50 calls for $0.45 to $1.00 with shares at $6.92. This was clearly fresh buying, as open interest in the strike was 1,356 contracts before the activity appeared.

Those calls traded for as much as $2.60 so far today, more than double their purchase prices. The stock rose 32.51% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a 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.

FLDM was last up 35.96% to $7.94 in mid-session trade. The biological research equipment manufacturer announced it was selected for a $37 million project under the National Institute of Healt’s RADX initiative today.