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

Jun 28, 2016 at 10:18 AM
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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. 

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