Jim Cramer -- Corbus Pharma Shows the Upside of Biotech Risk

Shares of Corbus Pharmaceuticals (CRBP) are up a whopping 73% on Monday after the company's positive phase II results for its Resunab drug. 

The company can do many interesting things with this drug, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment. 

Cramer also reminded investors that he had the CEO of Corbus Pharma, Dr. Yuval Cohen, on his "Mad Money" show in October. At the time, he called the stock a speculative play, because of its small market cap and higher risk. 

However, that risk seems to have paid off this morning, with shares hovering near new highs. 

There were a lot of short-sellers in this stock. When it comes to biotech stocks like this, Cramer said, the results are very binary. The companies are either going to hit it big or go bust. 

Either buying or selling in that situation can be dangerous. But after the good phase II results, those jumping in on the short side are doing so without an edge, Cramer said, and that's never a good move. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

If you liked this article you might like

Keep Buying Pot Stocks; Weed Isn't Going Away

Keep Buying Pot Stocks; Weed Isn't Going Away

How to Invest in America's Legal Weed Trend Through Marijuana Stocks

How to Invest in America's Legal Weed Trend Through Marijuana Stocks

California Dreamin': Searching for a 'Pot' of Gold Through Marijuana Stocks

California Dreamin': Searching for a 'Pot' of Gold Through Marijuana Stocks

Did Corbus Investors Get Thrown Off by a Red Herring?

Did Corbus Investors Get Thrown Off by a Red Herring?

Home Depot, Federal Realty, more: 'Mad Money' Lightning Round

Home Depot, Federal Realty, more: 'Mad Money' Lightning Round