Regeneron Stock Boosted on Published Results

Puts have been much more popular than usual in the options pits

Deputy Editor
Dec 18, 2020 at 12:56 PM
facebook twitter linkedin

The shares of Regeneron Pharmaceuticals Inc (NASDAQ:REGN) are up 1.8% at $505.38 at last check. The stock is in the spotlight today after the New England Journal of Medicine published positive initial results from a clinical trial of the company's COVID-19 antibody cocktail in non-hospitalized patients. 

Regeneron stock has been steadily moving lower in recent months, culminating in a Dec. 11 nine-month low of $471.58, where the stock dipped below the 320-day moving average for the first time since February. That trendline has since flip-flopped into close support, however, as REGN makes an early attempt at a rebound. Year-to-date, the equity is still up 33.6%. 

There is plenty of room for increased optimism amongst the brokerage bunch, with nine of the 20 analysts in coverage sporting a tepid "hold" rating. Elsewhere, short interest has also started to build during the most recent reporting period. 

Despite calls outnumbering puts on an absolute basis, the REGN's 50-day put/call volume ratio of 0.79 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all but 1% of readings from the past year, indicating a much strong-than-usual penchant for puts amid options traders during this time. 

That said, speculating on Regeneron stock's next move with options could be a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 36% stands higher than 19% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 



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