CERo Therapeutics Holdings Inc ( CERO ) shares are trading higher Tuesday after the company received U.S. Food and Drug Administration (FDA) Orphan Drug Designation for CER-1236.

What Happened: Immunotherapy company Cero Therapeutics announced that the FDA granted Orphan Drug Designation for its lead drug candidate CER-1236 for the treatment of acute myeloid leukemia.

CER-1236 is a therapy that engineers a cancer patient’s own T cell therapeutics that deploy target-cell eating mechanisms alongside the range of natural target cell destroying mechanisms used by T cells. The therapy is currently in Phase1 clinical trials for acute myeloid leukemia.

“Orphan Drug Designation underscores the importance of developing new treatments for AML, and the potential for CER-1236 to provide a new and differentiated approach toward treatment,” said Chris Ehrlich, CEO of Cero Therapeutics ( CERO ).

“We believe that we are at the forefront of innovation in immuno-oncology and are grateful for the recognition from FDA.  We look forward to providing updates on our trial in the near term.”

Cero Therapeutics ( CERO ) noted that the Orphan Drug Designation opens the door for potential incentives, including FDA assistance in designing clinical trials, access to grants, exemption from drug approval application fees and eligibility for seven years of marketing exclusivity.

Cero Therapeutics ( CERO ) had a market cap of just $2.83 million as of Monday’s close, with a total float of around 384,000 shares, according to Benzinga Pro. Low-float micro-cap stocks tend to be extremely volatile.

How To Buy CERO Stock

By now you're likely curious about how to participate in the market for Cero Therapeutics ( CERO ) – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

CERO Price Action: Cero Therapeutics ( CERO ) shares were up 118.8% at $14.95 at the time of publication Tuesday, according to Benzinga Pro.

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