Was Tonix Pharmaceuticals Holding Corp. (TNXP) Due for a Breather?

Tonix Pharmaceuticals Holding Corp. (TNXP) drug data has failed to impress

by Alex Eppstein

Published on Jun 11, 2015 at 1:40 PM

Trial data on Tonix Pharmaceuticals Holding Corp.'s (NASDAQ:TNXP) fibromyalgia drug, TNX-102 SL, has been poorly received. After initially moving higher on the news, the shares are currently down 8.5% at $7.73 -- off of year-to-date highs -- and have found a home on the short-sale restricted list. Some short-term options traders, however, may be welcoming the sharp move lower.

TNXP's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.76, with call open interest outstripping put open interest among options in the front three-months' series. However, this SOIR ranks above 60% of comparable readings from the last 52 weeks, suggesting short-term traders are slightly more put-skewed than normal -- and, thus, may welcome today's swoon, if they're on the long side.

Meanwhile, the brokerage bunch is decisively in the bulls' corner. Three of four covering analysts consider TNXP a "strong buy," with the lone dissenter sporting a "hold" recommendation. Also, the drugmaker's average 12-month price target of $11 represents expected upside of 42.3% to the current perch.

There's a reason for this optimism: Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) has been a technical beast, the current session notwithstanding. Even after accounting for today's sharp losses, the shares are up 32% year-to-date. As such, the equity's 14-day Relative Strength Index (RSI) sits at a lofty 82 -- in overbought territory, suggesting a short-term breather may have been in the cards.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
UNH Stock Pops on Accelerated Payment Promise
Analysts are very bullish on UnitedHealth stock
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
The Top Lithium Play of 2020
Click to continue to advertiser's site.