Red-Hot Drug Stock Could Be a Buy

This SAGE options signal has had bullish implications in the past

Jan 24, 2018 at 11:14 AM
facebook X logo linkedin


Shares of SAGE Therapeutics Inc (NASDAQ:SAGE) gapped 70% higher on Dec. 7, after the biotech reported well-received data for one of its depression drugs. The shares have yet to slow down, topping out at a record high of $183.05 earlier. Though SAGE stock was trading down 0.4% at $179.85 at last check, if history is any guide, the drug name could still be headed deeper into uncharted territory.

Specifically, SAGE's Schaeffer's Volatility Index (SVI) of 53% ranks in the 4th percentile of its annual range, indicating short-term options are attractively priced at current levels. Since 2008, there have been two other times the stock has been trading near 52-week highs while also sporting a low-ranked SVI, according to data from Schaeffer's Senior Quantitative Analyst Rocky White.

In the wake of those signals, the shares went on to average a one-month gain of 7.1%, and were positive both times. Another move of this magnitude would put the equity north of $194, based on the stock's current price, a new record high.

sage stock daily chart jan 24

And while most analyst are already bullish on SAGE Therapeutics stock -- all 12 maintain a "buy" or better rating, and the average 12-month price target is docked above $200 -- the equity could certainly stand to benefit from a continued round of short covering. Although short interest fell 22.31% in the most recent reporting period, 3.12 million SAGE shares are still sold short. This accounts for 9.23% of the security's available float, or 5.4 times the average daily pace of trading.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI