Unusual Options Activity Signals Potential Volatility for Siga Technologies

Siga US8269171067

Market observers are noting a significant buildup of speculative interest in Siga Technologies. Recent trading data revealed a dramatic surge in call option volume, exceeding the daily average by a factor of more than 1,400. This flurry of activity stands in contrast to the stock's recent performance, which has faced broader market headwinds. The concentrated bets suggest some traders are positioning for near-term price swings or potentially significant developments related to the company's flagship antiviral drug, TPOXX.

The current landscape presents a clear battle between opposing forces. Data from mid-January shows short interest increased by approximately 5.6% to 3.37 million shares. With a short interest ratio of about 4.8% and a "days to cover" metric of 9.2, it would take short sellers over nine trading days to close their positions at average volume. This bearish stance is now being directly challenged by the explosive rise in bullish call options, painting a picture of heightened market tension and conflicting expectations for the stock's direction.

Financial Foundation and Upcoming Catalysts

From a balance sheet perspective, Siga maintains a robust position. The company holds approximately $172 million in cash and carries no debt. This liquidity reserve is more than four times the capital required to cover its annual operating expenses, providing a substantial cushion to fund ongoing initiatives.

Investor attention is now turning to the window between February 25 and March 10, 2026, when the next quarterly earnings are scheduled for release. These results are anticipated to offer clarity on whether expectations for new international contract revenues are beginning to materialize in the current fiscal year.

Key Strategic Initiatives for TPOXX

Looking ahead, a major regulatory milestone is slated for 2026. The company's central operational goal is the submission of a supplemental New Drug Application (sNDA) to the U.S. Food and Drug Administration (FDA). This application seeks approval for TPOXX for post-exposure prophylaxis (PEP). A successful expansion into preventive use could substantially enhance the drug's long-term commercial profile.

In parallel, development of a pediatric formulation is advancing. Siga recently secured $27 million in funding to support the development and technical transfer of an intravenous version. Furthermore, the company has firm orders from the U.S. government valued at roughly $26 million slated for delivery this year.

Summary of Key Data Points:
* Call Options: Approximately 1,200 contracts traded, representing a volume 1,438% above the average.
* Short Interest: 3.37 million shares sold short, equating to a short interest percentage of 4.8%.
* Cash Position: $172 million in cash with zero debt.
* Regulatory Target: FDA submission for TPOXX (PEP) aimed for 2026.

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