Schaeffer's Top Stock Picks for '25

Analysts Raise the Bar as FibroGen Stock Breaks Out on Drug Data

VRX rallies on debt-reduction optimism, while FGEN soars into uncharted territory

Aug 8, 2017 at 10:47 AM
facebook X logo linkedin


The Dow Jones Industrial Average (DJIA) got off to a slow start this morning, but has since edged just high enough to extend its lengthy record-setting streak. Drug company Valeant Pharmaceuticals Intl Inc (NYSE:VRX), car rental service Avis Budget Group Inc. (NASDAQ:CAR), and pharma concern FibroGen Inc (NASDAQ:FGEN) are three stocks in the news this morning. Here's a quick look at what's moving shares of VRX, CAR, and FGEN.

VRX Put Options Active Post-Earnings

Valeant Pharmaceuticals stock is up 8.4% at $16.66, after the Bausch + Lomb parent topped analysts' expectations with its adjusted second-quarter profit of $1.05 per share. Additionally, Valeant said it's on track to trim $5 billion from its massive debt load earlier than the previously set February target date.

Traders were favoring weekly call options on VRX ahead of earnings, but it's a put strike that's attracting massive attention in the early innings of today's session. Specifically, the VRX October 16 put has traded volume in excess of 10,200 contracts -- an amount that represents nearly 25% of the stock's average daily call volume.

CAR Tumbles on Earnings Miss

After the company's adjusted second-quarter earnings fell short of expectations, Avis Budget Group shares are down 9.6% at $30.17. Options traders were paying up big to bet on CAR ahead of earnings. As of last night's close, Schaeffer's Volatility Index (SVI) of 85% registered in the 100th annual percentile, as the stock's front-month options were pricing in some of the highest volatility expectations of the past year.

Leerink Looks for More Record Highs from FGEN

FibroGen stock has scored price-target hikes from no fewer than three brokerage firms, despite a second-quarter earnings report that generally missed Wall Street's mark. Instead, traders and analysts are cheering upbeat drug data, as the company's treatment for idiopathic pulmonary fibrosis aced a mid-stage trial.

The loftiest target comes courtesy of Leerink, which upped its price forecast to $82 from $52. The freshly revised target implies expected upside of 145% to the stock's Monday close at $33.40 -- but FGEN gapped sharply higher at the open today, and is currently up 50.9% to trade at $50.40. Earlier, the shares hit a new record high of $51.45.

FibroGen has yet to attract much of a following among options traders, but those who are speculating on the stock have adopted a bearish lean. Schaeffer's put/call open interest ratio (SOIR) of 1.61 ranks in the 100th percentile of its annual range, pointing to a significant put skew among short-term options traders.  

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?