Aimmune Therapeutics Stock Nabs Record High After Drug Data

A short squeeze could push AIMT even higher

Patrick Martin
Feb 20, 2018 at 10:25 AM
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Aimmune Therapeutics Inc (NASDAQ:AIMT) stock is in focus this morning, after the company's peanut allergy drug AR101 met its late-stage study goals. Aimmune will now seek U.S. approval by the end of 2018. After being halted in pre-market trading, AIMT stock is up 1.3% to trade at $37.30, and touched a fresh record high of $42 out of the gate this morning.

The stock has been climbing since October, when rival DBV Technologies reported its treatment failed in a late-stage study. AIMT recently found strong support from the 80-day moving average, and overall has added nearly 87% year-over-year.

Short sellers have been in covering mode for a while now. Short interest has almost been cut in half since early September, but still represents more than 9% of the stock's total available float, and nearly six days of pent-up buying demand, at AIMT's average daily trading volume. This signals ample sideline cash available to help fuel the equity's fire. 

However, anyone looking to use options to speculate on Aimmune Therapeutics with options better be willing to pay up. The equity's Schaeffer's Volatility Index (SVI) of 178% ranks in the 96th percentile of its annual range. Said differently, volatility expectations are extremely high for near-term options at the moment.


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