Ocugen announced two agreements today
The shares of Ocugen Inc (NASDAQ:OCGN) are surging, up 6.7% to trade at $7.20 at last check. Today's positive price action comes after the biotech name announced that it has entered an agreement with Bharat Biotech International to co-develop its Covid-19 vaccine for U.S. and Canadian markets. In addition, the company also penned a deal with CanSino Biologics to collaborate on its gene therapy candidate OCU410, which treats age-related degeneration of macula in the eye.
Ocugen stock has traded mostly sideways over the last few months. Though the stock dipped below long-term support at the 200-day moving average last week, today's pop has the equity once again eyeing a close above that trendline. This bounce may have already been in the cards, too, per the security's Relative Strength Index (RSI) of 34, which sits on the cusp of "oversold" territory. Year-to-date, OCGN is up a whopping 303.3%.
A short squeeze could send the equity even higher. The 52.75 million shares sold short account for over 27% of the stock's available float, or nearly four days' worth of pent-up buying power. There is room for increased optimism amongst the brokerage bunch as well. Of the five analysts in coverage, three call OCGN a tepid "hold."
Options traders have been quick to the draw this morning, with 30,000 calls and 4,006 puts across the tape so far -- three times the intraday average. Most popular is the weekly 10/8 7.50-strike call, followed by the 8-strike call in the same series, with positions being opened at the former.