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Drugs and money: Betting big on a biotech giant

Celgene is set to soar in the next few days. At least that's what one big trader appears to think.

In a large trade Monday, one trader wagered over $324,000 that Celgene will rise over the next two weeks. Specifically, the trader purchased 2,774 125-strike calls at a price of 70 cents with an expiry on March 27. Just two minutes later, there was another purchase of roughly 2,600 124-strike calls priced at 50 cents and expiring a week from now. A call gives the right to purchase a stock at a given price on a set date.

The purchase may have something to do with the fact that Celgene will be presenting at the Barclays Capital Health Care Conference on Wednesday, according to CNBC contributor Mike Khouw.

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Lilli Day | Photodisc | Getty Images

"That might be the catalyst that they are targeting," said Khouw. "This is a bet that Celgene will be above $124.50 by the end of next week and above $125.70 by the end of the week after that."

Celgene closed at $118.41 per share on Monday, up just 38 cents from Friday's close.

Read MoreSpecialty drug spending sees record increase

However, not everyone is expecting big news from the company's presentation on Wednesday.

"This is a nonevent," said Michael Yee, who covers Celgene for RBC Capital Markets. "There should be standard comments on recent front-line myeloma approvals in the U.S. and EU, enthusiasm over the new Crohn's disease pill GED-0301 going to Phase III, and its 23 new partnerships with emerging biotechs like Agios, Acceleron and OncoMed."

Celgene's stock has been on an incredible run over the last few months. It is up 49 percent in the past year, and has doubled in the past two years.

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