$INO bulls score more profits

Inovio Pharmaceuticals (INO) spiked higher today on positive developmental news regarding its COVID-19 vaccine, sending call prices higher again.

On Jun. 17, Market Rebellion’s Unusual Activity Service found that 3,600 Weekly $15 calls expiring this Friday, Jun. 26, were bought $1.20 to $1.55 with shares at $14.11. This was clearly a new position, as open interest in the strike before that session began was only 1,184 contracts.

Those calls traded for as much as $7.70 today, about 5 times their purchase prices. The stock rose 58.89% in the same time frame, showing how quickly options can far outpace gains in their underlying shares.

It is the second winning trade in the name to be posted on Market Rebellion in just over the last month.

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.

INO was up 40.98% to $21.57 today. The biotechnology company received $71 million in funding from the DoD (Department of Defense) in support of its INO-4800 COVID-19 DNA vaccine.