Was Tonix Pharmaceuticals Due for a Breather?

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

Jun 11, 2015 at 1:40 PM
facebook X logo linkedin


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.
 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI