Every so often a stock spends a year telling you it’s dead money, and then in three sessions it tells you it lied.
CRISPR Therapeutics (CRSP) is that stock right now. For twelve months it chopped inside a wide range while the market decided gene editing was a science project with a burn rate. Then last week it broke out on the heaviest volume of the year, followed through, and pulled back on almost no volume at all. That pattern — heavy up, light down — is the one we look for. It usually means large hands bought and nobody is in a hurry to sell to them.
The reason is simple enough to say in one sentence: the first product is finally selling, the company has more cash than it can spend before this trade expires, and tomorrow it presents data on the drug that decides what this company is in five years.
Meanwhile roughly a fifth of the float is short on a thesis that just stopped being true. Sell-side targets have only moved one direction since February. And retail, which was extremely bearish a month ago, is only just starting to notice.
Below the line: the full setup, where the options market says the floor and the magnets are, who’s on the other side (and why they’re mostly mechanical sellers, not real bears), a stock plan with three add levels on the way up, three Jan-2028 option structures priced this morning, and exactly where the idea is wrong.
Not investment advice. Size for the binary tomorrow.
