(Bloomberg) -- A well-timed options trade in Point Biopharma Global Inc. stands to hand some investors upwards of $500,000 after Eli Lilly & Co.’s agreement to acquire the company sent its stock surging.

On Monday, more than 1,000 $7.50 call options expiring Oct. 20 traded, with the buyers paying between $0.40 and $0.55 apiece, big volume for a stock where typically only about 70 options contracts of any kind change hands in a given day. Total open interest was only about 10,000 contracts, nearly 80% of which were put options, which profit if the price of the underlying declines.

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At the time, shares were trading around $6.62, so buyers would need an almost 12% gain in less than three weeks to make money at expiration. They got all of that and more, as the stock almost doubled to more than $12 early Tuesday. Those calls are now worth $4.88, giving Monday’s buyers a tidy profit.


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