Mylan Stock Under Pressure After FDA Letter

Short interest on MYL has fallen to 10-year lows

Managing Editor
Nov 21, 2018 at 10:15 AM
facebook X logo linkedin

The shares of Mylan N.V. (NASDAQ:MYL) are down 0.6% to trade at $33.70 this morning, after the drugmaker disclosed a warning letter from the Food and Drug Administration (FDA) dated Nov. 9, detailing concerns about conditions at a facility in West Virginia. Cantor Fitzgerald maintained its price target of $41, saying this is a "negative for MYL and creates an overhang on the stock."

On the charts, its been a volatile few months for Mylan stock. The drug name fell to an annual low of $30.33 on Oct. 25, but then a few short weeks later gapped higher after an upbeat quarterly report. However, the shares' rally lost steam at their 160-day moving average, a trendline that has put a lid on any breakouts since June.

Despite the stock shedding 20% in 2019, sentiment surrounding the drug stock remains bullish. Ten of the 14 brokerages covering MYL rate it a "buy" or better, while short interest on the security plummeted 18% in the last reporting period to 9.81 shares, the lowest level in more than 10 years.

In the options pits though, put buying has been gaining in popularity. MYL's 10-day put/call volume ratio of 2.73 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 100th percentile of its annual range, indicating that speculators have shown a much healthier-than-usual appetite for bearish bets during the past two weeks.

Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) stands at 0.71, which also arrives in the 80th percentile of its annual range. In other words, speculators are more put-skewed than normal among options set to expire within three months. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI