Pfizer Stock Dips Despite Upbeat Covid-19 Vaccine Data

The shot also seems to protect against a variant identified in South Africa

Digital Content Manager
Apr 1, 2021 at 10:25 AM
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The shares of Pfizer Inc. (NYSE:PFE) are down 0.2% at $36.15 at last check, despite the drug maker posting updated results that showed its Covid-19 vaccine, in partnership with BioNTech (BNTX), is 91% effective for up to six months. The company noted its shot appears highly protective against the virus variant identified in South Africa as well, and added it plans to seek full regulatory approval from U.S. authorities in the near future.

Digging deeper, the security is just now starting to recover from a number of pullbacks that knocked it off its Dec. 9, three-year high of $43.07. The $35.50 level came in as a floor in late February, though, and the equity has since reclaimed support from the 20-day moving average. Longer term, Pfizer stock sports a 20% year-over-year lead. 

Analysts are still hesitant towards the equity, with nine of the 14 in coverage sporting a tepid "hold" rating, while the remaining five say "strong buy." The 12-month consensus target price of $40.54, on the other hand, is a 12.3% premium to the stock's current perch. 

The options pits are firmly in the bearish camp, with puts popular. This is per PFE's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 89th percentile of its annual range. In other words, puts are getting picked up at a faster-than-usual rate. 

Now looks like a great opportunity to bet on PFE's next move with options. The security's Schaeffer's Volatility Index (SVI) of 17% stands at the very bottom of the past 12 months. In simper terms, this suggest the equity is sporting attractively priced premiums at the moment.

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