The company's experimental tablet helped reduce patients' weight
Viking Therapeutics Inc (NASDAQ:VKTX) is skyrocketing today, last seen up 22.3% at $84.62. The company said an early-stage trial of its experimental weight-loss tablet helped reduce patients' weight, while proving to be safe and effective, and that it will initiate a phase 2 trial later this year.
So far today, 33,000 calls and 16,000 puts have already traded hands, which is six times the volume typically seen at this point. The most popular contract is the weekly 3/28 100-strike call.
A continued sentiment shift in the options pits could generate even more tailwinds, as the equity's Schaeffer’s open interest ratio (SOIR) sits the 86th percentile of its 12-month range. This means short-term options traders leaned bearish coming into today. Plus, the shares look ripe for a short squeeze, with 11.9% of their available float sold short.
The security is pivoting higher from the $60, after pulling back from its Feb. 28, record high of $99.41. The security is today looking to snap a three-day losing streak with is best single-day percentage gain since February, and boasts an impressive 360% lead so far this year.