$OMER calls skyrocket overnight

Option traders racked up astronomic gains just one session after opening bullish positions in Omeros.

Just yesterday, Investitute’s tracking systems detectd the purchase of 1,500 April $13 calls for $0.55 to $1.04 and 1,500 April $14 calls for $0.35 to $0.70. Shares were trading at $11.61 at the time.

Today the April $13s traded for $5.09 and the April $14s for $4.10, respectively more than 9 and 11 times their original purchase prices. The stock rose more than 50% at the same time, a huge move but nowhere near that of its options.

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.

OMER spiked higher by 35.31% to $15.75 today. The biopharmaceutical company surged after the new government spending bill allowed for higher reimbursement of Omeros’ products.