Regeneron Stock Boosted on Published Results

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

Assistant 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. 

 

 

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 Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners