Teva Pharmaceutical options traders should be happy today
The Dow is poised to make a triple-digit jump this morning. Among specific stocks in focus are drug stocks Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), Marinus Pharmaceuticals Inc (NASDAQ:MRNS), and Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN). Here's a quick look at what's boosting shares of TEVA, MRNS, and ACHN.
TEVA Stock Eyes Major Upside After CEO Announcement
Teva Pharmaceutical stock has been battered for months, falling to a 15-year low of $15.22 last week, before closing Friday at $15.50. The shares are set for a major comeback this morning, however, after the company announced Kaare Schultz as its new CEO. In response, TEVA is ready to open 14% higher.
If these gains come to fruition, it could be a big day for options traders, as well. For instance, Teva Pharmaceutical has a 10-day call/put volume ratio of 3.04 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Not only does this show call buying has tripled put buying during the past two weeks, but this reading ranks in the 90th annual percentile.
Ganaxolone Trial Results Lift Marinus
Marinus Pharmaceuticals is also ready to surge today, thanks to news of upbeat trail results for the company's epilepsy treatment, ganaxolone. This penny stock has been delivering monster gains, rising from a Dec. 30 close of $1.01 to settle Friday at $3.12. And with today's news, the shares are pointed another 51.9% higher. Meanwhile, a number of short sellers threw in the towel at the right time. Short interest on MRNS fell by 30.4% during the last two reporting periods.
Janssen Decision Puts ACHN Stock at Risk of Bear Notes
On the other end of the spectrum is Achillion Pharmaceuticals, down 23.6% in pre-market trading. This potential sell-off has been sparked by news Johnson & Johnson subsidiary Janssen Pharmaceutical has ended the two companies' collaboration on a hepatitis C treatment. ACHN stock closed last week at $4.91, well below its perch from this time last year when it traded near $8.
Achillion is now in danger of negative attention from the brokerage bunch. Specifically, five of the seven analysts tracking the equity say it's a "strong buy," and its average 12-month price target stands at $7.14. Don't be surprised if downgrades and/or price-target reductions could through and pressure the shares further.