CTI BioPharma Corp.'s (CTIC) Drug News Brings in Option Bulls

A positive development with a cancer drug sent bulls to CTI BioPharma Corp (CTIC)

Digital Content Group

Feb 4, 2015 at 11:01 AM

CTIC

CTI BioPharma Corp (NASDAQ:CTIC) jumped 4.6% yesterday, closing at $2.29, after an independent data monitoring committee recommended continuing a clinical study of its ovarian cancer drug Opaxio. Options bulls ran with the news, picking up calls at three times the normal single-session rate.

Receiving the most action by far was the April 2 call, where it seems buy-to-open activity took place. These speculators are hoping for CTIC to extend its run above $2 through the close on Friday, April 17, when the options expire.

On the sentiment front, analysts are all-in on CTIC. All six covering brokerage firms rate the stock a "strong buy." Plus, the equity's average 12-month price target of $5.08 is more than double its current perch, and stands in territory not charted since May 2012.

Analysts have kept this positive outlook on CTI BioPharma Corp (NASDAQ:CTIC) despite its technical struggles. Since its mid-September high of $2.93, the security has lost 24.2%. At last check, CTIC was down 3.1% at $2.22.

Follow @Schaeffers

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!