CBRX has two major upcoming catalysts, one is the FDA panel (1/20) and the other is PDUFA (2/26). Like most companies facing scrutiny by the FDA panel, CBRX has gained much attention in recent days, resulting in a nice 13.7% hike in today's trading with a more than 100% increase in volume.
More significantly, Jan 2.5 call options traded at $0.6 today, representing a doubling of yesterday's closing price (see the first time call options were mentioned as a strategy to trade CBRX; at the time they were $0.3).
With only 9 trading sessions remaining, dramatic volatility is expected with CBRX and more hike may follow as more traders pour in their money after today's action. At this point, trade with extreme caution! It is not uncommon for these stocks to swing up OR down 10+% in a day for no particular reason even before the panel makes a decision. If one has no position in the stock or stock options, I would in fact wait to play the slide on CBRX. I will be watching this one closely. Feel free to follow me on Twitter (@michaeljuan01) for more trading updates. Good luck!
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