Options Traders Blast Biotech Stock on FDA Buzz

The FDA lifted its clinical hold on FULC's treatment application

Deputy Editor
Aug 22, 2023 at 2:59 PM
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Fulcrum Therapeutics Inc (NASDAQ:FULC) is up 49.7% to trade at $5.87 at last glance -- its highest levels since March -- after the U.S. Food and Drug Administration (FDA) lifted its clinical hold on the biotech name's application for its sickle cell disease treatment. 

This pop has the shares breaking above their 150-day moving average, as well as a line of pressure at the $4.45 level, as they bid farewell to penny stock territory. Year-to-date, FULC is still down 21%, though. 

FULC Aug22

Options traders are blasting FULC after the update. So far, 7,735 calls and 2,996 puts have been exchanged, which is 26 times the stock's average daily options volume. The September 6 call is the most popular contract by far, with new positions being opened there. 

It's also worth noting that short interest represents 5.8% of the security's available float. It would take shorts nearly one week to cover their bets, at FULC's average pace of trading. 

 

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