Goldman: This Biotech Stock Could Double

CRSP call options are trading at twice the typical pace today

Apr 6, 2018 at 2:12 PM
facebook twitter linkedin


The shares of Crispr Therapeutics AG (NASDAQ:CRSP) are bucking today's broad-market headwinds, thanks to a positive analyst note at Goldman Sachs. Specifically, the brokerage firm launched coverage on the gene editing concern with a "buy" rating and an $86 price target -- more than double yesterday's close -- and waxed optimistic on the company's CRISPR/Cas9 technology. At last check, CRSP shares were up 5% to trade at $44.80, and options traders are rolling the dice on more upside.

Most analysts are already bullish toward Crispr Therapeutics stock, which boasts four "strong buy" ratings, compared to two "holds." Meanwhile, the average 12-month price target of $63.38 represents a premium of 40.8% to the equity's current price, and stands in uncharted territory.

As alluded to above, CRSP calls are trading at three times the average intraday clip, with more than 1,500 contracts already exchanged. Most active is the April 50 call, where it looks like some speculators are buying to open. By purchasing the calls to open, the buyers expect the security to surmount $50 by the close on Friday, April 20, when the options expire.

But just within the past hour there was massive action at the April 45 put, making it the most active option overall today by far. If traders are buying to open the contract, they're expecting the CRSP rally to stall and for the stock to hold below $45 in the weeks ahead.

The shares earlier today peaked at $49.32, and have spent the past several sessions struggling beneath their 40-day moving average. From a longer-term perspective, CRSP stock is still up an impressive 91% year-to-date, and notched an all-time high of $61.24 on March 9.

 

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! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners