Ocular Therapeutix Inc (OCUL) Darts Higher on Drug Data

Upbeat trial data on eye drug Dextenza has Ocular Therapeutix Inc (NASDAQ:OCUL) catching fire

Nov 14, 2016 at 10:29 AM
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Ocular Therapeutix Inc (NASDAQ:OCUL) is exploding this morning, after the drugmaker announced encouraging topline results for its experimental eye drug Dextenza. At last check, the biotech stock is 11.8% higher at $7.68, and once again testing resistance at its 200-day moving average, while its options are flying off the shelves.

At last check, intraday options volume for OCUL ranks in the 100th percentile of its annual range. Not to mention, the contracts are running at 13 times the expected intrday rate. That said, the stock's average daily options volume is low on an absolute basis, at a mere 331 contracts.

Short-term speculators could be uncomfortable with this morning's move higher. OCUL sports a Schaeffer's put/call open interest ratio (SOIR) of 0.84, which ranks in the put-skewed 80th percentile of its annual range. Meanwhile, for those looking to place near-term bets on the biotech stock, now is a good time. OCUL's Schaeffer's Volatility Index (SVI) of 99% sits in the low 7th annual percentile, suggesting modest volatility expectations are being priced in at the moment.

Elsewhere, short interest is high on the shares. Over 24% of OCUL's float is dedicated to these bearish bets. At the stock's average trading volume, it would take more than eight sessions for short sellers to cover -- which could be fueling today's rally, as these traders may be attempting to limit their losses.

Over the long term, though, bears have had the upper hand when it comes to Ocular Therapeutix Inc (NASDAQ:OCUL). Year-to-date, the stock has shed nearly 19% of its value, and is still a long way from filling its early June bear gap.

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