ZYNE Stock Skyrocketing on CBD Gel Update

The FDA just granted Zynerba "fast track" status for its new CBD-based gel

The Food and Drug Administration (FDA) granted Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) "fast track" status for its cannabinoid-based gel, Zygel, used in the treatment of symptoms brought on by the rare genetic disability Fragile X Syndrome (FXS). The stock is up 8% at $12.36 as a result.

ZYNE has seen some serious growth on the charts in 2019, more than quadrupling this year, and bucking the broad-market trend lower today. The stock just hit a nearly two-year high of $13.06 at the beginning of the month after an impressive seven-day rally. The equity has pulled back some, but managed to ricochet off its 20-day moving average, sending the shares back up the charts. The security is now trading back within striking distance of last week's peak close at $12.52.

Options bulls are jumping on the stock in response. So far 1,413 Zynerba calls have exchanged hands, almost double the expected amount, compared to just 291 put contracts. The May 12.50 and 15 calls are the most popular so far.

Despite the stock landing on the short-sale restricted list, these bears could be kicking rocks today. Short interest rose 22.3% in the last two reporting periods, now representing a whopping 23.3% of the stock's available float, which could propel the shares higher, should these pessimistic bets begin to unwind.

On the other hand, analyst sentiment surround the equity has been bullish, with five out of six putting "strong buy" ratings on the table, compared to a lone "hold." Plus, the equity's consensus 12-month target price of $20.08 is at a 62.2% premium to current levels.