The regenerative tissue specialist inked a deal with a major healthcare provider
Options volume is accelerated on PolarityTE Inc (NASDAQ:PTE) this afternoon, as the healthcare stock looks to snap its three day losing streak. Nearly 1,715 options are on the tape -- four times the average intraday amount -- with PTE shares up 8% at $14.52.
The upside comes following news the regenerative tissue specialist has inked a deal with the University Hospitals Cleveland Medical Center to offer its SkinTE product at the medical center's burn care and chronic non-healing wounds facilities. Plus, Cantor Fitzgerald reiterated its "overweight" rating and $65 price target -- a 346% premium to current trading levels.
Short-term options traders, meanwhile, are targeting a quick reversal for PTE stock. Amid relatively light absolute volume, the equity's December 17.50 put is likely being bought to open for a volume-weighted average price of $2.30. If this is the case, breakeven for the put buyers at the close this Friday, Dec. 21, is $15.20 (strike less premium paid).
Looking at the charts, PTE stock has struggled since its June 21 peak at $41.22, down 65%. More recently, the shares found their footing near $12.50, but subsequent rallies from here have stalled out near the formerly supportive $17.50 region, as well as the stock's descending 80-day moving average.
