It will be interesting to watch Cassava Sciences (SAVA) tomorrow. Open interest on $35-$45 calls is relatively high at 3,863. That represents about 22% of the average day trading volume for shares. Compare that for TSLA or SPY for example, where total cumulative open interest at $900 (TSLA) and $450 (SPY) calls are well below 10% of the average day trading volumes for shares.
The $46 and $47 strikes for tomorrow have an open interest of 682 and 396, but volumes traded today of 432 and 223. That means a lot of that open interest was traded today, so maybe some speculation of a move above. The open interest for the $50 strike is 2,169. If the price moves up to close over $50, a 7.5% increase from where it sits now, the open interest for calls from $35-$50 would represent just above 45% of the average daily volume. That's a pretty sizeable amount and could move the price quickly if even a quarter of those get executed.
Normally that means the hedge funds will short the stock to keep it below $50 and maybe even close below $45. However, with very limited shares available to short (and this stock already big on the FTD list) that may not actually be doable. It would definitely be perfect timing for a WSB type of move. If the price starts marching up, some shorts may get nervous and add a squeeze play to the move. Maybe nothing will happen tomorrow, but with the FDA deadline for the CP coming up this month it will be an entertaining stock to keep an eye on tomorrow.
Also I should add that today Eli Lilly announced that approval and release of donanemab, their AD drug, will be pushed back to late this year or next year. It didn't have the effectiveness that simufalim had in Phase 2 trials, but it's always nice for a competitor to not steal their thunder if Sava releases good preliminary results from the Phase 3 trials this spring or summer.