ACTION:
Buy to open the RIGL June 5 calls (RIGL150619C00005000, $0.25, up $0.07) at current levels.
Dear Momentum Options Subscriber,
I have a New Trade on a stock that I have done extensive research on, which could make an explosive move in the coming months.
Shares are currently at $3.70 but could easily soar past $5 by mid-June. The options I’m recommending are “cheap” but could easily double or triple on a run to $5-$6.
Rigel Pharmaceuticals (RIGL, $3.74, up $0.39)
Buy to open the RIGL June 5 calls (RIGL150619C00005000, $0.25, up $0.07) at current levels.
I like these call options to play a powerful move past $5. The company recently received FDA approval for its lung cancer drug, Opdivo, and Jefferies, a brokerage firm, has slapped a $10 price target on the stock.
The company also has a unique business model and a partnership with Bristol-Myers Squibb (BMY). Based on a $10 Price Target, this trade makes even more sense, but we just need a move past $5 by mid-June.
All prices given in this update are current as 1:45 p.m. EST.
Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options