Five Prime Therapeutics, Inc. stock trades under the ticker FPRX & has recently shown great technical strength, closing for trading on 11/17/2020 at $20.20/share.
FPRX stock has quadrupled since 11/10/2020, which is indicated through its RSI, which is sending overbought signals.
While we can expect to see it decline a bit based on the RSI & the fact that its only hollow candlestick since it’s take-off day is red (down, but finished above where it opened), cautious entry from a common share position, and a position favoring puts for options is likely the best course of action.
FPRX Stock Price: $20.20
10 Day Moving-Average: $11.36
50 Day Moving-Average: $6.15
200 Day Moving-Average: $4.86
RSI: 86
From a calls perspective, I would be focused on the $20 or $17.50 strike prices, while focusing on the $20 or $22.50 strike prices on the puts.
This way your trade is protected from the overall market’s behavior, as something with an RSI this high may prove to be quite temperamental in the event of a major market drop.
Five Prime Therapeautics, Inc. stock is worth a closer look from a short-term perspective, whether via options or their common FPRX shares.
*** I DO NOT OWN SHARES OF FPRX STOCK ***