Unusual Call Options Trade in Rigel Pharmaceuticals (NASDAQ:RIGL)

One trader has high expectations on Rigel Pharmaceuticals (NASDAQ:RIGL) stock price over the coming months.  The trader bought 844 September $5.00 calls at the ask in this unusual opening trade early this morning.  The bid ask on the Sept $5 calls is now 25 cents to 30 cents.

There looks to be some copycat action on the RIGL Sept calls  as a total of 960 calls have now traded today.  We are getting a few options and also mostly buying the common as these options are way out of the money and the trade seems a little risky, even if the trader does possibly have some insider knowledge.

Rigel Pharmaceuticals (NASDAQ:RIGL) is trading up just 8 cents to $3.76 this morning, off from it’s earlier high of $3.80.  It’s got a long way to go for these options to hit.  Rigel Pharma’s 52 week high is exactly $5.00, while it’s low this past year is $2.31.

Rigel Pharmaceuticals (NASDAQ:RIGL) reports Q2 earnings on August 4, 2014.  It’s certainly possible that is what this call buying is all about, leaked numbers certainly do happen.  It’s also possible that some favorable data on it’s phase 3 trials has leaked and may be announced shortly.  Or, as is often the case, an analyst is buying up some calls before announcing their stock upgrade and price target bump on Rigel Pharmaceuticals (NASDAQ:RIGL).  We’ll just have to wait and see, but at least we’ll be ready, by following the “smart” money.

There are only 6 analysts covering RIGL at this time, with a consensus rating of OVERWEIGHT.  The average price target is $6.00.  Last quarter lost 25 cents per share, while the estimates for the current quarter is a loss of 24 cents.

Rigel Pharmaceuticals (NASDAQ:RIGL) is involved in research and development of  treatment of inflammatory and autoimmune diseases, including fostamatinib which is in phase 3 trials now for rheumatoid arthritis.  RIGL is partnered with AstraZeneca (AZ), so there is another potential catalyst for this option buy.

Here’s the price chart on Rigel Pharmaceuticals (RIGL)