Biotech Stock Up Over 400% After Late-Stage Breakthrough

Core Insights - Capricor Therapeutics Inc (NASDAQ:CAPR) has seen a significant stock increase of 263%, trading at $23.09, following positive results from a late-stage study of its cell therapy for a heart condition related to Duchenne's muscular dystrophy [1] - The company plans to resubmit its treatment, Deramiocel, for FDA approval after it was previously denied, which had caused a 33% drop in stock price on that day [1] Stock Performance - CAPR is currently trading at its highest levels since 2017, with a peak of $40.37 earlier in the day, and has gained 87.6% year-to-date [2] - The stock has halted a trend of lower lows since a high of $20.04 on December 3 [2] Short Interest and Trading Activity - A short squeeze is contributing to the stock's breakout, with short interest increasing by 15.6% in the latest reporting periods, amounting to 14.15 million shares, which is 37.2% of the total float [3] - At the current trading pace, it would take shorts nearly 10 full trading days to cover their positions [3] Options Market Activity - There is a high demand for put options, with a 10-day put/call ratio of 3.99, just 3 percentage points from an annual high, indicating bearish sentiment [4] - The Schaeffer's put/call open interest ratio (SOIR) of 2.35 is in the 98th percentile of annual readings, further reflecting the popularity of puts [4] - On the morning of the report, 24,000 options were traded, which is eight times the average intraday volume, with the December 6 put being the most popular [5]