Traders score again in $TSRO

Bullish option traders rang the register with large profits in Tesaro today.

On Sept. 17, Investitute’s proprietary programs flagged the purchase of 4,500 October $30 calls for $5.37 to $6.50 with shares at $34.93. This was clearly a new position, as open interest in the strike was a mere 43 contracts before the trade occurred.

Those calls sold for $13.60 today, more than double their purchase prices. The stock rose 25.39% in the same time period, a big move but nowhere near that of its options. It was the second winning trade in Tesaro posted on Investitute in a little more than a month.

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.

TSRO was up 2.05% to $44.29 today. The biopharmaceutical oncology firm is scheduled to present data from six abstracts at the European Society for Medical Oncology Congress held on Oct. 19-23 in Munich.