Anavex released positive data for a trial of its Alzheimer's treatment
Anavex Life Sciences Corp (NASDAQ:AVXL) is surging up 26.8% at $11.25 at last glance, and was earlier trading as high as $12.73. The biotech name released positive data from a mid-to-late stage trial evaluating its lead drug, ANAVEX 2-73, which is a potential treatment for early Alzheimer's disease.
Options traders are blasting Anavex stock in response. So far, 15,000 calls and 21,000 puts have been exchanged -- 24 times the intraday average volume. The weekly 12/2 10-strike put is the most active contract, followed by the 9-strike call in the same weekly series, with new positions being opened at both.
Today's pop has AVXL on track to recover this week's hefty losses, with the shares back above their 200-day moving average for the first time since Monday. The stock has been falling since its Mid-November peak, and is currently sporting a 33.7% year-to-date deficit.
It's also worth noting that short interest represents a solid 13.5% of the stock's available float. It would take nearly 12 days to buy back these bearish bets, at AVXL's average pace of trading.