Struggling Biopharma Stock Blasts Higher After Upbeat Data

NKTX hit a record low just last session

Deputy Editor
Apr 25, 2022 at 10:35 AM
facebook twitter linkedin

Biopharmaceutical stock Nkarta Inc (NASDAQ:NKTX) is skyrocketing today, up 91.4% at $14.87 at last check, after the company announced positive preliminary data for two of its experimental cell therapy treatments. Specifically, NKX101 and NKX019 both showed promise in treating different blood disorders, with no reports of side effects. 

Fresh off a five week losing streak, NKTX has had a rough time on the charts this year. Last session, the stock hit a record low of $7.55. Still down 55.2% year-over-year, Nkarta stock is now hovering just below its year-to-date breakeven levels. Today's soaring price action has the equity breaking above several moving averages, however, including the 120-day trendline, which rejected the stock earlier this month. 

A stint of short covering could send the security higher, too. Short interest represents 6.3% of the stock's available float, or over eight days' worth of pent-up buying power. Plus, NKTX's 14-day Relative Strength Index (RSI) of 20 sits firmly in "oversold" territory. This means the stock could be due for a short-term bounce. 

Nkarta stock's typically quiet options pits were roaring with activity this morning, before trading was halted, with options volume running at 47 times the typical daily volume. The security saw 11,000 calls and 6,144 puts cross the tape, with the May 20 put and 22.50 call seeing the most movement. 


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