Microcap Biotech with Positive Results Sees Large Bullish Trade
Satsuma Pharma (STSA) buyers of 4000 November $7.50 calls at $2.30 spread against sales of $15 calls. A strong biotech making new highs this week after announcing positive results from the ongoing STS101 ascend phase 3 open-label, long-term safety trial. The stock is up 72% YTD and has open space higher into 15 on the chart from a large gap dwon in 2020. These call spreads appear to be looking for strong upside continuation. The Company is focused on developing a therapeutic product for the acute treatment of migraine. The Company’s product candidate, STS101, is a drug-device combination of a dry-powder formulation of dihydroergotamine mesylate (DHE), which is self-administered with a pre-filled, single-use, nasal delivery device. STS101 also incorporates an improved 2nd-generation nasal delivery device designed to provide more consistent nasal dosing, irrespective of user administration technique.