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
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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. 

 

 

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