Here's How A Trader Made $5.5 Million In One Day - Madrigal Pharmaceuticals (NASDAQ:MDGL)

Madrigal Pharmaceuticals Inc MDGL shares rose sharply on Monday after the company announced positive topline results from the pivotal Phase 3 MAESTRO-NASH (fatty liver disease) biopsy trial of resmetirom.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said traders bought 559 January 110-calls at $12 per contract on Friday.

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Those calls traded at $120 per contract on Monday, which implies that traders saw a profit of around $5.5 million in just one trading day, Khouw mentioned.

MDGL Price Action: Shares of Madrigal Pharmaceuticals jumped 268.1% to close at $234.83 in the regular trading session on Monday, and rose another 0.5% in after-hours trading.

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MDGLMadrigal Pharmaceuticals Inc

$315.48-3.73%