Put Volume Pops as GlycoMimetics Shorts Get Sidelined

GLYC is down more than 20% in early trading

Managing Editor
Mar 6, 2018 at 9:57 AM
facebook twitter linkedin

Shares GlycoMimetics Inc (NASDAQ:GLYC) are spiraling, after the biotech said the main objective of a late-stage trial for its acute myeloid leukemia is overall survival -- disappointing investors who believed the remission rate was the main goal, according to Stifel. The company also reported a fourth-quarter loss, and at last check, the pharma stock was down 21.7% to trade at $17.87 -- gapping below its 50-day moving average for the first time since mid-November.

Even with today's bear gap, GLYC has had a great year, picking up roughly 176% over the past 12 months -- thanks in part to last May's bull gap, sparked by a big regulatory win for the drugmaker. More recently, the shares touched a record high of $26.05 on Feb. 15.

Against this backdrop, analysts have been optimistic, with all five following the stock carrying "strong buy" recommendations. Echoing this, the stock's current 12-month price-target stands at $27 -- representing expected upside of 51% to current levels. 

Short sellers, on the other hand, were bracing for a retreat. Short interest rose nearly 3% over the past two reporting periods, and now represents 17.5% of GLYC's total available float. However, GlycoMimetics stock is on the short-sale restricted list due to this morning's sharp losses, sparking accelerated demand for put options. Amid relatively low absolute volume, GLYC put volume has surged to 65 times what's typically seen at this point in the day.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners