US biotech company Celgene announced after the bell today that it is buying competitor, Receptos (RCPT), for a cool $7.3 billion, or $232 per share. This purchase will add $6.5 billion to Celegene's market cap, and while the revenue stream is negligible, this gives Celegene direct access to a rich pipeline of blockbuster drugs that treat multiple sclerosis and irritable bowel syndrome, among other things.

You can read more about the merger here: http://finance.yahoo.com/news/celgene-agrees-buy-b...

In the Dr Stoxx Options Letter, we have been very bullish on CELG. We have closed 2 naked put positions in Celgene which netted us 57% and 83% returns in just days. Right now we are holding calls on CELG that should open up sharply tomorrow.The stock is currently trading up $7 which should push our calls to something near double what we paid for them. In 2 days. Nice!

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