Pfizer Draws Post-Earnings Upgrade

Volatility expectations remain elevated on Pfizer

Jan 31, 2019 at 10:22 AM
facebook X logo linkedin


Coming off the company's earnings release on Tuesday, Pfizer Inc. (NYSE:PFE) just received an upgrade to "outperform" from "neutral" at Credit Suisse, which bumped up its price target to $47 from $45. This is overshadowing a minuscule price-target reduction out of Independent Research, from $44 to $43. PFE shares are trading higher this morning, last seen up 2.4% at $42.21, as they try to extend their recent bounce from the 200-day moving average.

Options traders have seemingly been betting on upside from the equity. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), more than 52,602 calls have been bought to open during the past 10 days, compared to just 16,000 puts. On the other hand, total call open interest is quite small right now, with the 332,063 open calls registering in just the 3rd annual percentile.

Already this morning the blue chip is seeing heavy options trades. Volume for puts and calls is running at about three times the average intraday clip, and the February 43 call is most popular overall. Just below that are the weekly 2/1 42-strike call, and the March and April 41 puts, with new positions opening at the latter.

Even with earnings out of the way, volatility expectations aren't exactly muted on Pfizer. Its 30-day at-the-money implied volatility of 19.3%, for instance, still ranks higher than two-thirds of readings from the past year. In other words, premiums remain somewhat pricey for near-term options.

 

 

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