$MRNA option bulls get a second dose of gains

Option traders are posting more exponential gains on upside positions in Moderna (MRNA) today.

On Jul. 19, Market Rebellion’s Unusual Activity Service found that 7,700 Weekly $320 calls, expiring this Friday, were bought for $4.05 to $8.70 above the previous open interest of just 16 with shares at $298.02.

Those calls changed hands for as much as $27.00 today, more than 3 times their purchase prices. The stock rose 14.82% in the same time period, underscoring how quickly options can far outperform their underlying shares.

This marks the second winning trade in the name to be posted on Market Rebellion in the past week.

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.

MRNA ended the session down 2% to $307.33 this afternoon after setting a high of $342.51 earlier in the day. The drug maker will be added to the S&P 500 index, replacing Alexion (ALXN), tomorrow morning, Jul. 21.