Synta Pharmaceuticals Corp. SNTA
After catching a PR containing some big merger news for SNTA yesterday morning, we decided to include the stock in our premarket report, and it turned out to be a good decision.
On just under 12X the 3-month average trading volume, SNTA ran from a daily low of .32 up to .45 inside of the first 90 minutes of the session. That registered as a respectable intraday spike of 41% As measured to this morning’s premarket high of .488, that figure is extended to 53%
We’ll have our eyes peeled for another push this morning. The type of volume that we witnessed yesterday coupled with the stock holding more than 50% of its daily gains, puts SNTA into the category of a possible momentum play.
- Synta and Madrigal Announce Merger Agreement to Create Leading Cardiovascular-Metabolic Diseases and NASH Company (Thu, Apr 14)
Bonus Pharma Watchlist:
We are also going to be monitoring the activity in a couple of other pharma stocks in coming sessions: Aoxing Pharmaceutical Co., Inc. AXN and Eleven Biotherapeutics, Inc. EBIO
EBIO is reportedly another reverse-merger candidate that caught a wave of momentum on the heels of yesterday’s big news, and AXN is showing a double-bottom signal and has been making headway trading up off of its lows for the past few sessions. We’ll want to monitor both of these plays into next week.
SPDR S&P 500 ETF (SPY) – Fresh Options Idea
It wouldn’t be a typical Friday without a end-of-week options idea, so we’re going to turn to one of our classic targets- the SPY. Here in the premarket we’ve observed a low of 207.58. How we’ll want to play it is this: Should the SPY maintain support at 207.50 or above on any early pullbacks, we’re going to be interested in the Weekly $207.50-208 Calls. In the event it fails to hold support a that point, we’ll look to the Weekly $208-207.50 Puts.
*CAUTION: Trading weekly options on Friday is commonly a very high risk proposition. To be attempted by advanced traders only!
SUNE, LNCO, LINE, VSLR, EBIX, DRWI, AXPW(Bottom-Watcher)