Oncology Stock Expected to Double (Again)

Analysts and options bulls are circling outperforming IOVA shares

Jun 3, 2019 at 1:22 PM
facebook X logo linkedin


Several healthcare stocks are hot today, following the American Society of Clinical Oncology's annual conference, and Iovance Biotherapeutics Inc (NASDAQ:IOVA) is no exception. The company reported solid data for its cancer treatment for solid tumors, triggering a flood of upbeat analyst attention -- not to mention accelerated bullish betting in IOVA's options pits.

H.C. Wainwright lifted its price target to $32 from $26 -- roughly double IOVA's closing price of $16.35 on Friday -- as the brokerage firm waxed optimistic on Iovance's tumor-infiltrating lymphocyte (TIL) products. Likewise, Jefferies hiked its target to $33 from $29, and Oppenheimer raised its target by $5 to $30.

IOVA stock gapped higher on May 16, after the company said it would report the TIL therapy data at the ASCO conference. A "breakthrough therapy" designation from the Food and Drug Administration (FDA) for Iovance's cervical cancer treatment propelled the shares even higher on May 23, with IOVA notching an annual high of $19.07 last Friday, May 31. Today, the equity is up another 8.6% to trade at $17.76, and has now more than doubled year-to-date. This, even as the broader stock market suffered its worst month of 2019.

IOVA stock chart june 3

As alluded to earlier, IOVA option bulls are active today. The stock has seen more than 1,500 calls cross the tape so far -- more than double its average intraday volume. For comparison, fewer than 600 puts have traded today. Digging deeper, it appears some bulls are buying to open the June 20 call, which will move into the money if IOVA stock topples $20 -- territory not charted since late 2012 -- by the close on Friday, June 21, when front-month options expire.

Today's appetite for short-term calls runs counter to the security's current open interest configuration. Iovance sports a Schaeffer's put/call open interest ratio (SOIR) of 0.81, which is the highest reading of the past 12 months. In other words, while near-term call open interest exceeds put open interest on an absolute basis, the high percentile suggests near-term traders haven't been more put-heavy in the past year. An unwinding of pessimism in the options pits could fuel higher highs for outperforming IOVA.

A short squeeze could also add fuel to the fire. Short interest represents more than 14% of the stock's total available float, and would take more than six sessions to buy back, at IOVA's average daily trading volume.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI