Sangamo Therapeutics Bull Gap Fuels Hot Options Trading

Positive gene therapy trial data is fueling a big session for SGMO stock

Apr 2, 2019 at 12:43 PM
facebook twitter linkedin


The shares of Sangamo Therapeutics Inc (NASDAQ:SGMO) are on fire, after the California-based biotech reported positive data in a phase 1/2 study for its gene therapy hemophilia treatment that's being developed with Pfizer (PFE). The company also unveiled upbeat data for an early stage study for a gene therapy being developed with Sanofi (SNY).

In reaction, SGMO stock is trading up 28.2% at $12.22, pacing for its best day since May 11, 2017, when it gained 60.9%. Options traders are in overdrive, too, with 9,875 calls and 4,811 puts on the tape so far -- 14 times what's typically seen at this point. The April 10 call is most active, but it looks like speculators may be taking profits on the now in-the-money options.

Elsewhere, new positions are being initiated at the April 15 call, though there appears to be some sell-to-open activity occurring. If this is the case, call writers expect $15 to serve as a short-term ceiling through front-month options expiration at the close on Thursday, April 18.

Short sellers are likely feeling the heat right now. The 13.6 million SGMO shares currently sold short represents 13.4% of the stock's available float, or 5.3 times the average daily pace of trading. As such, some of today's upside could be part of a short squeeze.

Heading into today's trading, Sangamo Therapeutics stock had been chopping lower over the past 12 months, with its 200-day moving average keeping a tight lid on the equity. This trendline is rearing its ugly head as resistance today, too, with the shares last seen trading below it after a brief pop above it for the first time since early September.

sgmo stock daily chart april 2

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners