Bausch Health Stock Hits 27-Year Low on Patent Decision

BHC is trending on social media trading platform Stocktwits.com

Digital Content Manager
Jul 28, 2022 at 2:51 PM
facebook twitter linkedin


The shares of Bausch Health Companies Inc (NYSE:BHC) are cratering today, last seen down 50.3% at a roughly 27-year low of $4.32. Today's negative price action came after Delaware federal district court judge Richard Andrews said parts of patents related to subsidiary Salix Pharmaceuticals' drug, Xifaxan, were invalid. The equity was earlier halted for volatility, and is trending on social media trading platform Stocktwits.com.

Bausch Health stock is also seeing an unusual amount of options activity today. In fact, 28,000 calls and 12,000 puts have exchanged hands, which is triple the volume that is typically seen at this point. The most popular is the September 12 call, followed by the August 12 call. 

Short-term options traders have been overwhelmingly bearish towards the security. This is per BHC's Schaeffer's put/call open interest ratio (SOIR) of 1.47, which ranks higher than 97% of annual readings. This means these traders have rarely been more put-biased.

It's not hard to see why -- the security had been struggling to overcome the $10 level since May, after a couple of bear notes knocked it down to the $7 area. Meanwhile, the 60-day moving average has kept a tight lid on the shares for most of 2022. Longer term, BHC is down 85.4% year-over-year.

BHC 60 Day

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners