Regeneron Pharmaceuticals Set to Test Chart Support After Earnings

Long calls were unusually popular on REGN in recent weeks

May 7, 2019 at 9:22 AM
facebook twitter linkedin


Regeneron Pharmaceuticals Inc (NASDAQ:REGN) stock is trading down 3.7% ahead of the bell, after the biotech reported slimmer-than-expected first-quarter adjusted earnings of $4.45 per share. Regeneron revenue of $1.71 billion also missed the mark.

The shares have sold off sharply since their March 4 17-month high of $442. The stock's $330-$335 area has recently emerged as a floor, a region that coincides with a late-June bull gap, and cushioned pullbacks in late 2018. REGN stock is poised to test this floor once again today, set to open near $331, after closing last night at $344.23 -- down 7.8% year-to-date.

Options traders were optimistic ahead of Regeneron earnings. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 2.29 ranks in the 70th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

Echoing this, REGN's Schaeffer's put/call open interest ratio (SOIR) of 0.77 ranks in the 7th percentile of its 12-month range. In other words, short-term options traders are more call-heavy than usual on the stock.

Given REGN's longer-term troubles, it's possible short sellers are using some of these calls to guard against any upside risk. Short interest surged 23.1% in the two most recent reporting periods to 2.35 million shares -- still a low 2.9% of the security's available float, though.

 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners