Omeros Shorts Are Feeling The Heat

Omeros Corporation OMER shares are trading higher by $0.74 (6 percent) at $11.18 in Thursday's session. There is no specific news on the issue to account for the rally,

However, one potential catalyst for the rally is the large short interest in the issue of 22.55 percent, or 9 million shares, which implies a short interest ratio (days to cover) at 21.5 days.

Most likely, shorts were leaning on the resistance at the $10.60 area. Not only did the issue have a trio of highs at that area in early January, it posted highs on Tuesday ($10.57) and Wednesday ($10.55).

Its opening tick of $10.45 has turned out to be the low for the session. Once the $10.60 was breached, shorts went into scramble mode, so far pushing the issue to $11.33. That high coincides with its December 16 high of $11.38.