$IMMU bulls quadruple money

Upside option traders turned huge profits on Immunomedics (IMMU) today.

On Apr. 9, Our Unusual Activity programs flagged the purchase of 2,000 June $22 calls as part of a complex bullish spread, selling an equivalent amount of upside calls and downside puts, for $1.85 to $2.05 with shares at $19.27. There was no open interest in the strike before this day’s trading occurred, showing that these were new positions.

Those calls traded for $8.00 today, more than 4 times their average purchase price. The stock surged 50.70% since the original positions were opened, a large move but still nowhere near that of its options 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.

IMMU jumped to a new high of $29.67 before pulling back to close at $26.18 today, still up 19.16% for the session. The biopharmaceutical company announced yesterday the FDA approved its Trodelvy for the treatment of adult patients with metastatic triple-negative breast cancer.