Short-term $PFE bulls post large gains

Upside trades opened in Pfizer early this week turned big profits before they expired today.

On Monday, Investitute’s market scanners found that 2,000 Weekly $33 calls expiring this afternoon were purchased for an average of $0.13 with shares at $33.30. Volume was well above the strike’s open interest of 666 contracts, indicating that this was new positioning.

Today those calls traded up to $0.61, a profit of 370 percent in five sessions. The stock was up less than 1 percent at the same time, underscoring how quickly options can outpace their underlying shares by exponential margins.

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.

PFE rose 0.48 percent to $33.39 today. The drug maker pulled back sharply a week ago but has since erased all of those losses.