$PTI calls double in minutes

Bullish option traders are logging fast profits in Proteostasis Therapeutics Inc. (PTI) today.

Just over ninety minutes ago, Market Rebellion’s Unusual Activity Service detected the purchase of 10,000 December $3 calls for $0.65 to $0.71 as part of a bullish spread with shares at $2.72. Volume was well above the strike’s previous open interest of 2,607 contracts, showing that this was a new position.

Those calls have traded for as much as $1.50, more than double their purchase prices. The stock rose 35.66% in the same time, underscoring how options can far outperform their underlying shares.

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.

PTI is up 28.21% to $3.59 in midday trading. The biotechnology company was assumed with an Overweight rating and $8 price target at Cantor Fitzgerald yesterday morning, and presented at Piper Jaffray’s Healthcare Conference this morning.