Nkarta announced promising preliminary data for its cell therapy
Biopharmaceutical stock Nkarta Inc (NASDAQ:NKTX) is skyrocketing today, up 91.4% at $14.87 at last check, after the company announced positive preliminary data for two of its experimental cell therapy treatments. Specifically, NKX101 and NKX019 both showed promise in treating different blood disorders, with no reports of side effects.
Fresh off a five week losing streak, NKTX has had a rough time on the charts this year. Last session, the stock hit a record low of $7.55. Still down 55.2% year-over-year, Nkarta stock is now hovering just below its year-to-date breakeven levels. Today's soaring price action has the equity breaking above several moving averages, however, including the 120-day trendline, which rejected the stock earlier this month.
A stint of short covering could send the security higher, too. Short interest represents 6.3% of the stock's available float, or over eight days' worth of pent-up buying power. Plus, NKTX's 14-day Relative Strength Index (RSI) of 20 sits firmly in "oversold" territory. This means the stock could be due for a short-term bounce.
Nkarta stock's typically quiet options pits were roaring with activity this morning, before trading was halted, with options volume running at 47 times the typical daily volume. The security saw 11,000 calls and 6,144 puts cross the tape, with the May 20 put and 22.50 call seeing the most movement.