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Biotech Stock Up Over 105% on Upbeat Cancer Drug Data

ARAV's ovarian cancer treatment reported positive early-stage results

Managing Editor
Nov 20, 2019 at 10:09 AM
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Once more, a surging biotech sits at the top of the Nasdaq after positive data for a cancer drug. Today its Aravive Inc (NASDAQ:ARAV), up 106% to trade at $13.78, after the Texas-based firm's ovarian cancer treatment reported positive data in an early-stage trial. 

It's set to be Aravive's best single-session gain ever by a wide margin, and has the stock cruising toward its highest close since June 2018. Prior to today, ARAV was already up 90% for the year, but has spent the past two months consolidating below the $7 level. 

So far, no analysts have come forward with any bull notes. That's probably because all three in coverage already rate the stock a "strong buy." However, ARAV's consensus 12-month price target of $15 is now a slim 6% premium to its current perch, implying that there's ample room for price-target hikes to fuel more short-term upside.

Usually, there is minimal activity in AVAV's options pits. But already within the first hour trading, over 1,000 puts have changed hands, volume already doubling the previous annual high. Leading the charge is the December 10 put, where it appears sell-to-open activity is occurring. 

 

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