$IMMU bulls quadruple money

Option traders turned huge profits on Immunomedics today.

On April 30, Investitute’s market scanners identified the purchase of 1,600 June $20 calls for $1.30 to $1.35 above open interest of 212 contracts with shares at $18.21. Another 6.750 of those calls were bought for $2.30 as part of a bullish roll on May 18.

Those calls traded for $5.90 today, more than 4 times their initial purchase prices. The stock surged 42.3% since the original positions were opened, a large move but still nowhere near that of its options on a relative basis. It was the second winning trade in the name posted on Investitute in less than three weeks.

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.

IMMU jumped 10.26% to $25.04 today. The biopharmaceutical company announced positive clinical data on its breast-cancer treatment this morning.