The Journal of Neuroscience found no evidence of data manipulation in its 2012 article
Cassava Sciences Inc (NASDAQ:SAVA) is soaring today, up 46.1% to trade at $82.80 at last glance, after the company said the Journal of Neuroscience found no evidence of data manipulation in its 2012 article describing a new approach to treating Alzheimer's. The article is key to Cassava's lead Alzheimer's treatment, simufilam, after its validity was called into question in August by a Citizen Petition to the U.S. Food and Drug Administration (FDA). Today's news comes ahead of the company's third-quarter earnings report, too, which is due out before the open on Monday, Nov. 8.
Cassava Sciences stock is now trading at levels not seen since its August nosedive, while jumping above the 120-day moving average for the first time since then as well -- a trendline that coincides with former overhead pressure at the $70 level. In the past week alone, the equity has added 91.6%, though it is worth noting it landed on the Short Sale Restricted (SSR) list today, and that short interest represents a whopping 25.2% of the stock's available float.
Options traders are targeting the equity at full force today, with options volume running at four times what's typically seen at this point. So far, 93,000 calls and 53,000 puts have crossed the tape. The weekly 11/5 100-strike call is the most popular by far, with new positions being bought to open there.