Pfizer Inc. (PFE) Stock Rises on $350M China Investment

Pfizer Inc. (NYSE:PFE) is on the rise, on news of a $350 million investment in China

Josh Selway

Jun 28, 2016 at 10:18 AM

Drugmaker Pfizer Inc. (NYSE:PFE) is rebounding with the broader stock market today -- not to mention some sector peers -- amid news the company plans to invest $350 million in the first biotech center in China. Plus, Pfizer's bococizumab met its primary endpoint in late-stage studies, SPIRE-HR and SPIRE-FH. At last check, PFE stock has added 1% to trade at $34.13, putting the shares' year-to-date gain at 5.7%.

Short interest has been receding quickly on PFE. In fact, short interest fell by roughly 49% during the last two reporting periods, and now less than 1% of the stock's float is sold short.

At the same time, there's been more pessimism than normal in the stock's options pits. By the numbers, PFE's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.76 sits just 1 percentage point from a 12-month high, meaning put buying has been much more popular than usual.

No matter your angle, it's a good time to buy premium on short-term PFE options. The stock's Schaeffer's Volatility Index (SVI) of 21% ranks in the 19th annual percentile. This means the options market is pricing in historically low volatility expectations at the moment.

Taking a quick look at analysts, most are upbeat on Pfizer Inc. (NYSE:PFE). There are 15 analysts covering the shares, and nine rank them a "strong buy," while none have issued a "sell" rating.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.