Unusual Far OTM Call Buy in Head & Neck Cancer Small Cap Biotech
Cue Biopharma (CUE) with an unusual trade earlier this week that bought 3000 April $30 max strike and timeframe calls to open for $1.30. CUE shares are +20.5% YTD and working back to highs for the year nearing a weekly base breakout and above $16.30 a large volume pocket while $15.40 is VWAP off its 2020 highs up above $30 and retracement targets to the upside are $18, $20.70 and $23.30. CUE is a clinical stage biopharmaceutical company engineering a novel class of injectable biologics to selectively engage and modulate targeted T cells directly within the patient’s body. CUE believes that Immuno-STATs offer several key points of potential differentiation over competing approaches, including modularity and versatility providing broad disease coverage, manufacturability, and convenient administration. CUE-101 is its most advanced clinical stage asset, currently being dosed in a Phase1 monotherapy trial for human papilloma virus (HPV)-driven recurrent/metastatic (R/M) head and neck cancer, as well as in a first line Phase 1 combination trial with KEYTRUDA® (pembrolizumab) in the same indication. CUE-102 focuses on Wilm’s tumor-1 (WT1) as the tumor antigen. CUE will be presenting at SITC on 11-13 as a near-term catalyst. CUE does not see much analyst coverage but a year ago Berenberg started shares at Buy with a $30 target noting CUE’s highly selective IL-2-based cancer therapy to treat head and neck cancer in both advanced disease and front-line settings are under-appreciated by the market.