TherapeuticsMD Stock Bulls Get a Win with Imvexxy Approval

In the options pits, traders were selling to open TXMD calls

May 30, 2018 at 9:29 AM
facebook twitter linkedin


Women's health specialist TherapeuticsMD Inc (NASDAQ:TXMD) is seeing its stock rally today, up 4.5% at $6.72, thanks to news the Food and Drug Administration (FDA) approved its hormone therapy Imvexxy for the treatment of vulvar vaginal atrophy -- marking the company's first approved drug. As such, Cantor Fitzgerald -- which sent the stock soaring back in November -- reiterated its $26 price target and "overweight" rating.

Wall Street was already in love with TXMD, as all seven analysts in coverage have "strong buy" ratings on the shares, and the average 12-month price target is $14.44, more than double current levels. However, there are plenty of skeptics outside the analyst community, with almost one-third of the equity's float controlled by short sellers. This would suggest TherapeuticsMD stock could be a short squeeze candidate.

As for options data, call buying has been popular -- but so has call selling. Peak open interest sits at the June 7 call, and the June 5 and 6 strikes are also home to notable open interest, while data shows a mix of buy- and sell-to-open activity at each of these contracts. Meanwhile, the June 8 call saw a lot of buying activity in recent weeks.

Looking at the charts, the shares have been trending higher since late March, guided higher by their 20-day moving average and recently overtaking the 200-day moving average. Overall, TXMD was up almost 62% year-over-year even before today's pop.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1