Was Tonix Pharmaceuticals Due for a Breather?

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.