AAL

Biotech Stock Screaming 'Buy'

IMMU stock could hit higher highs soon, if recent history is any guide

May 2, 2018 at 1:07 PM
facebook X logo linkedin


The shares of drugmaker Immunomedics, Inc. (NASDAQ:IMMU) have been virtually unstoppable lately, pacing for a fourth straight weekly gain and fresh off a 16-year high. What's more, IMMU is one of the few stocks currently trading near new highs while simultaneously sporting attractive short-term option premiums -- even with earnings around the corner -- and previous signals of this kind have preceded big-time rallies for Immunomedics shares.

IMMU stock was last seen 1.6% higher to trade at $19.37, and earlier today notched a 16-year peak of $19.64. The security has already added 14.4% so far this week, after scoring a massive April gain of almost 25%. In fact, since skimming the $2 level in late 2016, the shares of IMMU have rallied about 900% atop support from their 32-week moving average.

IMMU stock chart

Meanwhile, the stock sports a Schaeffer's Volatility Index (SVI) of 81.6% -- higher than just 17.7% of all other readings from the past year. This indicates that Immunomedics' short-term options are pricing in relatively low volatility expectations right now -- a boon for would-be premium buyers.

Since 2008, there have been five other times where IMMU stock was trading near new highs and had an SVI in the bottom 20% of its annual range. The shares were higher one month later four of those times, with the biotech averaging a gain of 13.98%, according to Schaeffer's Senior Quantitative Analyst Rocky White. A similar surge from current levels would put IMMU around $22.08 -- deeper into decade-plus-high territory.

What's more, a short squeeze could propel the pharma stock even higher. Short interest represents more than a quarter of IMMU's total available float, equating to more than three weeks' worth of pent-up buying demand, at the security's average pace of trading.

As alluded to earlier, Immunomedics is slated to report earnings after the close on Tuesday, May 9. Traders looking to take advantage of relatively cheap near-term call options should note that IMMU stock moved higher the day after reporting following four of its last five reports.
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.