CBIO Stock Reverses Course, Despite Hemophilia Study Success

Catalyst Biosciences shares were on fire prior to today

Digital Content Manager
Jul 8, 2019 at 10:29 AM
facebook twitter linkedin

The shares of Catalyst Biosciences Inc (NASDAQ:CBIO) were up in early market trading, after the drugmaker announced its treatment, MarzAA, successfully reduced bleeding episodes in patients with hemophilia during a mid-stage study. However, unlike sector peer Sangamo Therapeutics (SGMO), CBIO stock quickly reversed course to trade lower. The stock is down 6.3% at $8.72, just coming off Friday's three-month highs. 

In fact, the equity was enjoying a serious surge on the charts before today. Since bottoming out at a year-to-date low of $6.92 in early June, CBIO not only managed to string together four consecutive weekly wins, but just racked up a 26.3% weekly surge -- the biggest since an early April spike. Now, the stock is trading back below its 200-day moving average -- a trendline CBIO toppled on Friday. 

While analysts are pretty quiet on the biopharma name, all four in coverage give it a "buy" or better rating. Plus, the consensus 12-month price target is more than three times CBIO's current price, at $27.25 -- a region the area hasn't touched since before a massive June 2018 bear gap

While shorts are jumping off the bearish bandwagon in droves, down 21.6% in the last two reporting periods, the 920,000 shares sold short still represent almost a quarter of the stock's float. Plus, it would take six days to cover these pessimistic positions, at the security's average pace of trading.

What's more, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.14 is at the bottom of its annual range, meaning short-term option players haven't been more call-heavy during the past 12 months. 


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! 



Special Offers from Schaeffer's Trading Partners