2 Healthcare Stocks Lower After Bear Notes

Both ATHN and BIIB have struggled in recent months

Managing Editor
Nov 27, 2018 at 10:03 AM
facebook twitter linkedin

This morning, two names in the healthcare sector are lower after receiving some bearish analyst attention. For starters, athenahealth, Inc (NASDAQ:ATHN) is down 0.3% to trade at $132.25, after Wells Fargo downgraded the IT services specialist to "market perform" from "outperform," while slashing its price target to $135 from $185. -- the per-share buyout bid put forth by Veritas Capital and Elliott Management earlier this month. The brokerage firm believes the deal will go through, but cautioned investors against near-term risk if it doesn't get approved.

On the charts, athenahealth stock gapped lower back in September, culminating in an annual low of $116.77 on Oct. 12. The shares rallied back in November to trade above the $132 level. Longer term, the security is still shade below its year-to-date breakeven level. 

Elsewhere, Biogen Inc (NASDAQ:BIIB) stock is down 0.7% to trade at $317.22, after RBC trimmed its price target to $338 from $364. The shares have shed 10% this quarter and are now in the red year-to-date, but continue to near a key technical level.

In BIIB's options pits, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the stock with a 10-day put/call volume ratio of 1.84, which ranks 4 percentage points from an annual high. This means that puts have been bought to open over calls at a quicker-than-usual clip, albeit amid relatively light absolute volume.

Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) stands at 1.47, which arrives in the 97th percentile of its annual range. In other words, speculators are more put-skewed than normal among options set to expire within three months. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners