TEVA Stock Extends Slide After Bear Note

The drug stock is stuck in a seven-day slide

Managing Editor
Sep 7, 2018 at 9:53 AM
facebook X logo linkedin


The shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) are down 2% to trade at $21.32, after Credit Suisse downgraded the drugmaker to "neutral" from "outperform." The analyst in coverage also trimmed their price target to $23 from $25, and expressed concern that the Food and Drug Administration (FDA) will not approve the company's migraine drug.  

Teva stock nabbed an annual high of $25.96 back on Aug. 21, after the FDA approved the company's EpiPen generic. Since then, however, TEVA has pulled back, paring the gains from that mid-August bull gap. Today's drop has the shares testing their 160-day moving average for the first time since May, and on track for their seventh straight loss. 

In the options pits, call buying has been quite popular. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the 10-day call/put volume ratio of 3.16 ranks in the 93rd percentile of its 12-month range. Not only does this show that calls outnumber puts by a healthy three-to-one margin, but the high percentile rank indicates the rate of call buying relative to put buying has been quicker than usual.

Digging deeper, the September 23 call saw the largest increase in open interest during this time frame, with more than 7,700 contracts added. Data from the major options exchanges confirms buy-to-open activity here, indicating options traders are expecting TEVA to climb higher in the next two weeks.

Meanwhile, Teva stock has consistently rewarded premium buyers over the past year. This is per the stock's Schaeffer's Volatility Scorecard (SVS), which is currently docked at an elevated 97 out of a possible 100. This suggests that TEVA has regularly made larger-than-expected moves on the charts, compared to what its options were pricing in.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI