Amgen reports earnings today, and some traders have already chalked up profits in the stock.
OptionMonster's tracking systems detected unusual activity in the February 80 calls, with buyers paying $2.91 to $2.97 early in the session. Long calls such as these lock in the price where investors can get buy stock, so they can generate big profits on a percentage basis in the event of a rally.
And that's exactly what happened yesterday in Amgen. The biotech giant started climbing shortly after the options traded, and those calls ended the session worth $4.10 — a gain of more than 35 percent. The stock rose less than 2 percent in the intervening hours, which illustrates the kind of leverage that options can provide.