Bullish Signal Could Mean New Heights for Gene Therapy Stock

CRSP is up over 97% year-over-year

Digital Content Manager
Aug 5, 2020 at 2:52 PM
facebook twitter linkedin

The shares of Crispr Therapeutics AG (NASDAQ: CRSP) are down 1.2% to trade at $93.47 this afternoon, though the stock still enjoys a 97.8% year-over-year lead, with support from its the 30-day moving average. More upside may be on the horizon, too, with the security trading within 2% of its July 8, all-time-high of $97.82 while also sporting amid historically low implied volatility (IV) -- a historically bullish combination for CRSP. 

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been two other times in the past five years when the stock was trading within 2% of a 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower -- as is the case with the security's current SVI of 66.3%, which sits just above the 16th percentile of its 12-month range. The data shows that one month after these signals, the stock was higher 50% of the time, averaging a one-month return of 12.1%. From its current perch, a move of similar magnitude would put the CRSP just below $105, at yet another record high.


Analysts are optimistic toward Crispr Therapeutics stock. Of the 14 in coverage, 10 sport a "buy" or better rating, and the remaining four carry a tepid "hold" or worse. Meanwhile, the stock's 12-month consensus target price of $95.21 is only a 1.6% premium to current levels.

That upbeat sentiment is reflected in the options pits, too, where calls hold the advantage. In the past 50 days, 9,007 calls have exchanged hands on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to a meager 1,596 puts. The resultant call/put volume ratio of 5.64 sits in the 89th percentile of its annual range, suggesting a healthier-than-usual appetite for bullish bets of late. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners