FDA Buzz Sends Health and Wellness Stock Surging

Shares of Hims & Hers Health Inc (NYSE:HIMS) are popping 10% higher to trade at $20.50 this morning, running higher off good news from the Food and Drug Administration (FDA). The FDA announced it will allow compounding pharmacies to create and sell their own version of Eli Lilly's (LLY) weight-loss drug Mounjaro.

In response, HIMS is enjoying a healthy bull gap, pacing toward its highest close since July, and has now broken above the resistant $20 level. The stock sports a 230% year-over-year gain, but still remain a ways off its mid-June peak.

Over in the options pits, traders are moving in, with 18,000 calls across the tape so far today, volume that's three times the average intraday amount. Most popular is the October 20 call, as well as the November 21 and 23 calls.

A short squeeze could help HIMS return to those summer highs. Short interest dropped 11.7% over the past month, yet the 24.76 million shares sold short still accounts for 14% of the stock's total available float.