Investors See No Limit For Inotek Pharmaceuticals

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Inotek Pharmaceuticals Corp ITEK shares were trading sharply higher by $9.30 (190 percent) at $14.60 in Thursday's session. The catalyst for the rally is the announcement of a positive end-of-phase 2 meeting with FDA and Phase 4 development for Trabodenoson, a novel treatment for glaucoma.

In addition, Cowen hopped on the bandwagon and raised its price target all the way to $40.

After a sharply higher open ($8.32 vs. Wednesday's close of $5.23), it retreated to $7.66 before heading into the stratosphere. So far, the rally has taken the issue beyond its former all-time high ($6.20) to $16.75 before falling back under $15.

The rally is taking place on monster volume. So far, 41.1 million shares compared to its 20-day average of a meager 2 million shares as the close approaches.