Ziopharm Oncology Inc. (NASDAQ: ZIOP)
Ziopharm Oncology started to skyrocket upward this morning. The CNA Finance team has done a bit of preliminary digging into the situation. Here’s the What, Why, and What’s Next with regard to ZIOP…
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ZIOP Gains Big
Ziopharm Oncology was off to a relatively normal start for the day today. However around 11AM, we started to see some upward movement. Around noon (12:27), the stock was trading at $5.62 per share after a gain of $0.43 per share so far today (8.17%).
Why Is This Happening?
The CNA Finance team investigated the situation as soon as it started. First, we look for fundamental news that would likely lead to the movement. Of course, we searched Google News, Bing News, Yahoo! Finance, and other news streams. Unfortunately, we weren’t able to uncover anything. At the moment, there’s nothing too big, fundamentally, that’s going on.
This ultimately tells us that the gains are likely the result of a technical buy signal leading to excitement in the market.
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Moving forward, CNA Finance is going to follow any developments on the story closely. In the mean time, if we are correct in saying that the gains are likely purely technical, it’s going to be important to watch this trend closely. If this is the case, any signs in slowing momentum upward can prove to be a sell signal for the masses, causing the stock to drop. So, keep your eyes on the news, and the momentum of this trend.
Update: Here’s What’s Causing The Gains
The gains are being caused by big options purchases. In fact, someone purchased big blocks of January 7 and January 10 call options. This is a speculative move, speculating that the price will rise between now and then. This pushed the market up, leading to investor excitement and more gains!
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