Enlivex Therapeutics Stock Surges on Covid-19 Therapy Update

Enlivex Therapeutics Ltd (NASDAQ:ENLV) is surging today, up 21.8% at $12.39 at last check, after the drug maker said Israel's health ministry allowed it to kick off a mid-stage clinical trial to test its experimental therapy, Allocetra, in severe and critical Covid-19 patients with acute respiratory distress syndrome.

Today's bull gap has the security trading at its highest level since March, though that is still far off its Feb. 8, two-year high of $29.40. The equity is now pacing for its first close above the 140-day moving average since late April, and sports a 132.3% year-over-year lead.

The security's usually quiet options pits are bursting with activity today. So far, 3.919 calls and 409 puts have exchanged hands, which is 63 times what is typically seen at this point. Most popular is the August 12.50 call, followed by the 150 call in the same monthly series, with positions being sold to open at both.

These options traders are in luck, as ENLV options are a bargain at the moment. The stock's Schaeffer’s Volatility Index (SVI) of 103% stands higher than just 4% of readings from the past year. This suggests options traders are pricing in low volatility expectations right now.