We did indeed call the swing. ACRX was trading at around$2.90 when we identified it as a good swing-trade candidate. Currently it is trading around $4.54 making for a healthy 55% gain. Where I was mistaken was in my estimation that it would jump 50-100% in today’s trading session. It looked like the share price wanted to in the pre-market reaching a high of $5.60, but then the shorts woke up.
As of today October 15th there are nearly 4 million shares short and only 2.6 days left to cover. That means the shorts came out in full force today to stifle the share price low enough to cover without incurring heavy losses, or any losses at all for that matter. I anticipate that shorts will cover between $4.30 and $4.45. After that we should see an uptrend for the rest of the day. ACRX might even touch $5. I am definitely not selling my shares for such a discount. I actually picked up some October $5 calls. The share price should continue to rise as the PDUFA date approaches on November 3rd in anticipation of approval. As I outlined in my previous article, approval of DSUVIA would be a huge revenue stream especially with the company’s contract with the Department of Defense (DOD).
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