Crispr Therapeutics and Editas Medicine both had huge days
In our Midday Market Check newsletter, we highlighted the huge move from Switzerland-based gene editing firm Crispr Therapeutics (CRSP), but that was just part of a much larger theme today. A number of stocks with gene editing exposure saw sharp gains today, and one of the biggest returns came from Editas Medicine Inc (NASDAQ:EDIT). Just take a look at EDIT stock's peers, according to Google Finance's "Related companies" section.
After touching its highest point since June 2016 earlier, peaking at $34.81, Editas Medicine closed the day up 11.7% at $34.32. The security has been making headway since bottoming near $13 in May. In fact, it came into today's trading fresh off a seven-month win streak.
Many options traders are betting on this bullish run to extend through the coming weeks. Call volume closed the day at more than two times the expected rate, and the most popular option was the January 2018 35-strike call. Data suggests traders were buying to open positions here, signaling expectations the stock will push back above $35 in the coming weeks. At the close, this contract had an ask price of $1.70.
Short interest is still elevated on Editas, but the number of shares sold short has declined notably since peaking at 7.36 million in July, currently standing at 5.66 million shares. In just the last two reporting periods, short interest on EDIT stock fell 14%. If this trend continues, it could help keep the wind at the equity's back.