Elizabeth Harrow, Schaeffer's Investment Research, highlights a stand out in the Pharmaceutical space.

Biopharma stock Ionis Pharmaceuticals (IONS) — formerly known as Isis Pharmaceuticals — has been a standout performer in 2019. After breaking out above resistance at the $60 level in late February, the equity's bullish momentum accelerated, and IONS hit a fresh record high above $83 per share today, edging past its April 1 peak of $82.75.

Since mid-March, lows in IONS shares have occurred around the $78 level, roughly coinciding with its previous highs from the first quarter of 2015. So, while the stock's 14-day Relative Strength Index (RSI) of 73 is hovering in overbought territory, it looks like the shares have established firm support near their current perch.

And in fact, data from Schaeffer's Senior Quantitative Analyst Rocky White suggests that now might be an ideal time to bet on more upside for IONS via the stock's call options. Currently, IONS is trading near 52-week highs on the charts at the same that its Schaeffer's Volatility Index (SVI)— a measure of front-month, at-the-money option implied volatilities — is lingering in the lower fifth of its annual range. Previously, this high stock price/low implied volatility combination has preceded powerful short-term gains for IONS.

Specifically, IONS sports an SVI of 40%, which arrives in the 12th percentile of its annual range. This suggests that front-month options have priced in lower volatility expectations for the biopharmaceutical stock only 12% of the time during the last 52 weeks. Per data from White, there have been just four prior instances since 2008 of IONS trading this high while its implied volatility have been this low. Following those previous signals, IONS has been higher one month later 75% of the time, with an average one-month return of 5.9% for the period.

Based on IONS' closing price of $81.74 on Tuesday, another rally of this magnitude would place the stock around $86.56 by this time next month, at new all-time highs. Such a move would likely spark some anxiety on the part of short sellers, who have amassed a sizable stake against IONS. Currently, 9.3% of the equity's float is sold short, and it would take 11.2 trading days for all of these shorted shares to be covered, at the stock's average daily volume. That's a formidable supply of sideline cash to support additional short-term upside.

Likewise, there's room for sentiment to improve among analysts. There are 11 brokerage firms following IONS, and nine of those call the stock a "hold" or "sell." Any upgrades in response to the strong price action could draw more buyers to the table.

In addition to the historical significance of the high stock price/low implied volatility combination for IONS, the affordability of the stock's short-term options (from a volatility standpoint) means that prospective call buyers can speculate on more gains with limited capital at risk, while obtaining greater leverage on a favorable directional move. Plus, there's time for all of this to play out before event-related risk enters the picture due to the company's first-quarter earnings report, which is tentatively expected during the first week of May.