Pharma Stock Surges After FDA Approves Treatment

No fewer than eight analysts hiked their RETA price targets

Digital Content Manager
Mar 1, 2023 at 2:30 PM
facebook X logo linkedin

The shares of Reata Pharmaceuticals Inc (NASDAQ:RETA) are up 178.5% at $86.81 this afternoon, after U.S. Food and Drug Administration (FDA) approved the drugmaker's Skyclarys treatment for Friedreich's ataxia, a rare genetic disorder. No fewer than eight analysts hiked their price targets in response, with Guggenheim lifting its objective to $130 from $75.

Overall options volume is running at seven times the intraday average so far today, with 17,000 calls and 53,000 puts exchanged. Most popular is the March 75 put, where new positions are being opened.

Short-term options traders have been much more pessimistic than usual. This is per Reata Pharmaceuticals stock's Schaeffer's put/call open interest ratio (SOIR) of 1.89, which ranks in the 90th annual percentile, suggesting these traders have rarely been more put-biased.

Short interest is on the rise, too, up 8.6% over the last two reporting periods. The 8.83 million shares sold short account for a whopping 28.7% of the stock's available float, or nearly two weeks' worth of pent-up buying power.

The stock earlier today surged to a one-year high of $90, breaking through recent overhead pressure around $50. RETA has added an 262.9% in the last nine months, with the 200-day moving average acting mostly as support since October.

 RETA 200 Day


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI