AstraZeneca Stock Flat Despite COVID-19 Vaccine News

AZN calls rue the roost lately

Deputy Editor
Jun 5, 2020 at 2:07 PM
facebook twitter linkedin

The shares of AstraZeneca plc (NYSE:AZN) are up 0.2% at $53.99 this afternoon, amid news that the pharmaceutical company signed new agreements that will raise the global supply capacity for its COVID-19 vaccine candidate to more than 2 billion doses. A phase 2/3 trial of the drug has already began with around 10,000 volunteers, and AZN said its plans to treat people around the world for no profit during the pandemic. 

After a mid-March bear gap sent AZN to an annual low of $36.15, the shares battled back to hit an all-time high of $57.42 by May 21. After spending the last three weeks trading sideways, the equity is now facing off with its 20-day moving average -- a trendline that AstraZeneca stock has only breached three times since March.

AZN Chart June 5

In the options pits, AstraZeneca's 50-day call/put volume ratio of 24.06 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the highest percentile over the last 12 months. This means there is a healthier-than-usual appetite for long calls of late. Speaking of calls, there have been 26,000 calls ordered up today, double the average intraday amount and volume pacing in the 98th percentile of its annual range. New positions are being opened at the June 56 and 57-strike calls.





These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners