$SGMO bulls score big intraday

Bullish option traders are turning fast gains in upside positions opened in Sangamo Therapeutics (SGMO) today.

Earlier this afternoon, Market Rebellion’s Unusual Activity Service identified the purchase of 2,000 December $12 calls for $0.10 to $0.65 with shares at $11.85. This was clearly fresh buying, as volume was well above the strike’s previous open interest of 1,189 contracts.

Those calls traded for as much as $3.90 in the following trade leading up to the end of the session, at least 6 times their purchase prices. The stock rose 31.65% in the same time frame, illustrating 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.

SGMO finished the day up 52.98% to $15.65, setting fresh 52-Week highs this session for the genomic medicines company.