One earnings short-squeeze candidate in the biotechnology and drugs complex is Optimer Pharmaceuticals (OPTR), which is set to release numbers on Thursday after the market close. This company is focused on discovering, developing and commercializing hospital specialty products. Wall Street analysts, on average, expect Optimer Pharmaceuticals to report revenue of $28.77 million on a loss of 38 cents per share.
If you're looking for one stock that's held up relatively well during the recent market weakness and seen strong upside volume flows, then make sure to take a strong look at shares of Optimer Pharmaceuticals.The current short interest as a percentage of the float for Optimer Pharmaceuticals is very high at 21.4%. That means that out of the 45.36 million shares in the tradable float, 9.88 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 15.3%, or by about 1.3 million shares. From a technical perspective, OPTR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock sold off hard in early April from around $14 to a low of $11.87 a share on monster volume. Following that move lower, shares of OTPR have rebounded sharply towards its current price of $14.77 a share. That move now puts OPTR within range of triggering a major breakout trade post-earnings. If you're bullish on OPTR, I would look for long-biased trades after its report if this stock manages to break out above some major overhead resistance at $15.12 to $15.40 a share with high-volume. Look for volume on that move that registers near or well above its three-month average action of 645,698 shares. If we get that action, then OPTR should continue its uptrend momentum towards its 2011 high of $17.95 or possibly even $20 a share. I would simply avoid OPTR or look for short-biased trades if the stock fails to trigger that breakout, and then drops back below its 50-day moving average of $13.57 a share with heavy volume. If we get that action, target a move lower towards its 200-day moving average of $12.48 or possibly even $11 a share if the bears spark a big selloff post-earnings.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV