This morning, ERAS caught my attention straight out of the gap scanner, and it’s shaping up to be a really interesting trade — potentially even for the rest of the day. To Subscribe to Trade Ideas:
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What stood out immediately was the gap down and reverse setup. ERAS opened lower, sold off, and then started to reclaim ground — a classic reversal pattern that often signals opportunity when buyers step back in.

When I zoomed out to the daily chart, the context became even more compelling. ERAS previously had a massive pop, and while I’m not suggesting it’s heading straight back to those highs, the key takeaway is room to move. That prior expansion leaves plenty of overhead space if momentum continues.

There was also some broader biotech sector volatility in play. Later in the afternoon, rumors circulated about RVMD potentially being acquired by ABBV. Even though ERAS had nothing directly to do with that news, we saw a lot of sympathy movement across the bio sector — several names making aggressive moves, which helped put ERAS on the radar.

For me, it was the combination of the gap-down reversal and the daily chart structure that made this trade attractive. I took my position around the $6.20 area, and now it’s a matter of managing the trade and seeing whether momentum follows through.

Not every trade needs a catalyst tied directly to the ticker — sometimes sector behavior and technical structure are enough to tip the odds in your favor.

Let’s see how this one plays out.