$QURE bulls post big gains

Option traders more than tripled their money in upside positions on uniQure today.

On Feb. 15, Investitute’s proprietary programs flagged the purchase of 5,000 December $40 calls for $8.20 with shares at $36.23. There was no open interest in the strike before the trade occurred, showing that this was a new position.

Those calls sold for $27.90 in a bullish roll today, about 3.5 times their purchase price. The stock rocketed 77.5% in the same time period, a huge move but still well below that of the calls on a relative basis, underscoring the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

QURE slipped 0.9% to $64.91 today but has more than doubled this year. The gene-therapy company has rallied along with other companies in the space amid merger speculation.