Biotech stock Grail Inc (NASDAQ:GRAL) is taking a nosedive today, brushing off better-than-expected fourth-quarter results after the company's three-year cancer screening trial failed to meet its main goal. Last seen down 47.7% at $53.11, the equity is headed for its largest single-day percentage drop on record as it hits its lowest levels since September.
Grail is a spinoff of Illumina (ILMN), and has been publicly traded since June 2024. Year over year, shares are still holding on to an 11% lead, though they're now sharply removed from their Jan. 22 record high of $118.84.
Shorts are likely cheering today's bear gap, as short interest makes up 14.5% of the stock's available float. It would take more than five days for traders to buy back their bearish bets, at GRAL's average pace of trading.
Options traders are already chiming in. The stock has already seen 41 times its average daily options volume, with the most activity at the February 60 call, expiring at the end of the day today. There are new positions being bought to open at this contract as well.
