CNST Stock Surges on Analyst Note

The brokerage bunch was already optimistic coming into today

Digital Content Manager
Feb 13, 2020 at 12:29 PM
facebook twitter linkedin


Constellation Pharmaceuticals Inc (NASDAQ:CNST) is bucking the broad-market trend today, and surging after SunTrust Robinson initiated coverage with a "buy" rating and a $50 price target -- a roughly 43% premium to last night's close. The analyst said Constellation's myelofibrosis drug candidate CPI-1610 showed promised, calling it "likely ahead of the competition." The stock is up 7.1% to trade at $37.24, and is on track for its highest close in two weeks. 

Plus, CNST is looking to overtake its 20-day moving average, which has acted as a ceiling on the charts this year, leading the equity lower. The stock is still eyeing a nearly 20% year-to-date drop, but boasts a 224.6% gain in the last 12 months of trading. 

CNST Chart Feb 13

While options activity is still running at a relatively low volume, the 165 calls that have crossed the tape represent 27 times the expected intraday volume. It looks like most of this activity surrounds the September 45 call, where positions are possibly being sold to open, suggesting these traders are calling the $45 level as a ceiling for CNST ahead of the contracts expiration on Sept. 18. The 25-strike put from the same series is also getting some attention, with positions being opened here. 

Circling back to analyst sentiment, it looks like those in coverage are pretty optimistic. Coming into today, the stock sported seven "buy" or better ratings, and just one "hold." Meanwhile, this penchant for bullish bets in the options pits also seems to be the norm, with 7.6 calls bought for every put at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). 

Keeping all this in mind, options look like an attractive way to bet on Constellation Pharmaceuticals next move. The equity's Schaeffer's Volatility Index (SVI) of 76% sits lower than all other readings from the past year, suggesting options haven't priced in such low volatility expectations in the past 12 months. 

 

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!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners