This Call Option Has 200% Potential and NO Expiration Date!

Yesterday, it was announced that Cigna revised its policy, and it will now consider covering this company’s medical device.

As a result, the stock jumped from 27 cents to as high as 38 cents on 800% greater than average volume.

Before the market’s fourth quarter selloff this stock was trading at $1 (300% higher).

The company I’m highlighting today is ReWalk (RWLK), which has a very exciting product.

ReWalk describes its product as, “a wearable robotic exoskeleton that provides powered hip and knee motion to enable individuals with spinal cord injury (SCI) to stand upright, walk, turn, and climb and descend stairs”.

The product sounds like a miracle, but it’s not new.

When it came public in 2014 it opened at $12, then ran up to $35, but has trended lower ever since.

Unfortunately, the company has legitimate reasons for its stock price to be at 30 cents. In short, it has struggled to breakout of a cycle of needing to raise cash to fund operations.  

In November, RWLK raised more capital by selling stock and warrants at a value of 30 cents per share. This caused shares to drop from around 60 cents to under 25 cents.

However, since January RWLK has climbed on increasing volume. This pattern is bullish, and probably reflects the market’s expectation that the Cigna news was coming.

Now we need to decide if yesterday’s news event and heavy volume gap up may be the beginning of a new trend up. Here’s how.

If RWLK trades over yesterday’s high of 38 cents then it’s a trade entry opportunity.

If RWLK trades down, but holds support at 24 cents, this would also be a potential buying opportunity.

Ultimately, the all-time low is 17 cents which could serve as your lowest stop.

I’m looking at this trade as if it was a call option that doesn’t have an expiration date!

It’s very possible that an entry over 38 cents could lose half its value if stopped out, but even if it only rallies up to its 2018 high of $1.35 it’s a 200% gain.

If it rallies back to its 2017 high at $3.20, from here it’s a 10 bagger.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily