FDA Nod Could Rattle Array Biopharma Shorts

The FDA gave a major boost to Array's colorectal cancer treatment

Aug 7, 2018 at 9:17 AM
facebook twitter linkedin


Boulder-based Array Biopharma Inc (NASDAQ:ARRY) is attracting pre-market attention this morning, after its BRAFTOVI drug, in combination with MEKTOVI and cetuximab, was given a Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA) for the treatment of mutant metastatic colorectal cancer. The FDA nod means the drug development and review process will be expedited.

ARRY is up 8.7% in electronic trading, after closing Monday's session at $15.07. The stock is in the process of bouncing from support at its 200-day moving average, which previously contained its May lows around the $13 level.

Despite a choppy price trend in 2018, ARRY was up 17.7% year-to-date through last night's close. And based on the security's early momentum, the biopharmaceutical concern looks set to rally back above its historically significant 160-day moving average, as well.

If short sellers are rattled by Array Biopharma stock's surge, a short-covering rush could translate into a sustained move higher. Short interest accounts for 8.4% of the equity's float, or seven times ARRY's average daily trading volume. This leaves the stock well-positioned to capitalize on an unwinding of these bearish bets.

 

 

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