This Biotech's Bull Signal Has Never Been Wrong

VRTX has been outperforming on the charts this year

Digital Content Manager
Nov 14, 2022 at 1:15 PM
facebook twitter linkedin


Biotechnology concern Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has been a standout during the past year, joining some of its sector peers in notable annual returns. The security surged to a record high of $318.38 on Nov. 2, and while the subsequent weeks have proven to be a bit bumpy, VRTX has locked in several layers of support on the charts. The $290 mark is a notable level for investors to watch, while a historically bullish trendline has also stepped in as an important area of support. In fact, the stock's pullback to this level late last week could mean even more record highs in the equity's near future. 

A study from Schaeffer's Senior Quantitative Analyst Rocky White shows VRTX coming back within one standard deviation of its 40-day moving average. Over the past three years, the stock has seen five similar instances on the charts. One month after these signals, Vertex stock was higher each time, averaging a 5.3% jump. A similar move from its current perch would put the equity at $326.26 -- well above its early November peak. 

vrtx nov 14

A further shift in sentiment amongst options traders could push VRTX higher as well. Of the 20 in coverage, seven still say "hold." Plus, the 12-month consensus price target of $323.38 is a slim 4% premium to current levels. 

Short-term options traders, meanwhile, have been more put-biased than usual. VRTX sports a Schaeffer's put/call open interest ratio (SOIR) of 0.84, which sits higher than 67% of readings from the past year. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners