$GLPG call buyers triple money overnight

Galapagos NV (GLPG) is handing fast profits to bullish option traders this session.

Yesterday, on Jan. 26, Market Rebellion’s Unusual Activity Service found that 2,000 April $55 calls were bought for $4.00 as part of a complex bullish spread above the existing open interest of 98 contracts with shares at $53.75.

Those calls traded for as much as $12.40 today, more than 3 times their purchase price. The stock rose 16.55% in the same time frame, showing how quickly options can far outperform moves in their underlying shares 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.