S&P, Nasdaq Hit New Highs as Tech Outperforms

Options traders are blasting Teva Pharmaceutical

by Karee Venema

Published on Nov 25, 2019 at 11:55 AM

Stocks are soaring today, with the technology sector leading the way higher on reports Beijing is seeking greater protection for intellectual property rights -- a key hurdle in U.S.-China trade negotiations. Wall Street is also sifting through an onslaught of M&A headlines, including news Charles Schwab (SCHW) will buy fellow broker TD Ameritrade (ATMD), and French luxury retailer LVMH will purchase Tiffany & Co (TIF). At last check, the Dow Jones Industrial Average (DJI) was up triple digits, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) were holding near the record intraday highs they hit earlier.

  • Founder and CEO Bernie Schaeffer uncovers a potential bearish barrier in the options market.
  • Analyst targets 20% upside for red-hot chip stock.
  • Plus, Teva Pharmaceutical pop sparks heavy options trading; Arrowhead Pharmaceuticals climbs Nasdaq after upgrade; and a sinking penny stock.

midday market stats nov 25

Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is seeing unusual options volume, with nearly 58,000 contracts traded so far -- more than two times what's typically seen at this point, and volume pacing in the 98th annual percentile. The March 11 and 12 puts are most active due to what could be a possible roll down, while nearer-term traders appear to be buying to open the weekly 11/29 11-strike calls. TEVA stock is up 7.2% at $10.97, after a Bloomberg report suggested generic drugmakers are working with U.S. regulators to end a price-fixing probe.

Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) is near the top of the Nasdaq, up 19.2% at $58.66, earlier hitting a 12-year peak of $59.72. This comes after Baird shifted gears on the stock, upgrading it to "outperform" from "neutral," and boosting its price target to $70 from $39, saying Novartis' buyout of Medicines Co (MDCO) could mark a period of consolidation among RNAi therapeutics' developers.

arwr stock daily price chart on nov 25

La Jolla Pharmaceutical Company (NASDAQ:LJPC) is one of the worst stocks on the Nasdaq, after the company ended a study for its iron overload treatment and announced the departure of CEO George Tidmarsh. LJPC stock has plunged 55.3% to trade at $2.49, earlier tagging a seven-year low of $2.41.

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