Teva Stock Pops on Generic NuvaRing® Announcement

The equity added 23% in the last three months

Deputy Editor
Jan 15, 2021 at 10:32 AM
facebook twitter linkedin

The shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) are up 0.4% at $11.54 this morning, after the company announced plans to launch a generic version of Merck's (MRK) birth control device known as the NuvaRing®. According to data from IQVIA as of November 2020, vaginal ring contraceptives like the one Teva will produce have annual sales of over $837 million in the U.S.

The equity has had a volatile run on the charts of late. After pulling back to $9.65 to close out 2020, TEVA shot up the charts to trade as high as $11.90 by Jan. 13 -- its highest level since August. Over the last three months, the security has added 23%, while its 10-day moving average has already contained at least two pullbacks since the year started.

Meanwhile, the options pits are bullish, as per the security's 50-day call/put volume ratio of 22.17 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 99% of readings from the past year, indicating long calls are being picked up at a faster-than-usual clip. 

As far as options are concerned, TEVA's Schaeffer's Volatility Index (SVI) of 56% sits in the low 9th annual percentile. This means low volatility expectations are being priced into near-term contracts -- a boon to potential premium buyers.


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