Biogen Stock Moves Lower Despite Beat-and-Raise

BIIB remains down over 32% year-over-year

Digital Content Manager
Jul 20, 2022 at 10:21 AM
facebook twitter linkedin

Biogen Inc (NASDAQ: BIIB) earlier lifted its full-year profit forecast after reporting blowout second-quarter profits of $5.25 per share on revenue of $2.59 billion, both of which came in above Wall Street's expectations, as sales of multiple sclerosis (MS) drug Tecfidera topped estimates. Nevertheless, the equity was last seen down 2.5% to trade at $214.69 amid the company's warnings over increased competition from other generic rivals in the U.S.

The security's latest rally off the $188 region lost steam at the $222 level yesterday. Shares still have support at the 20-day moving average, though, which started guiding BIIB higher in mid-June. Longer term, Biogen stock still carries a hefty 32.2% year-over-year deficit.

Short-term options traders have been relatively optimistic towards Biogen stock, per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.66, which sits higher than just 17% of readings from the last year. In other words, short-term options traders have rarely been more call-biased.

The good news for those looking to speculate with options is they can be had for a bargain at the moment, per BIIB's Schaeffer's Volatility Index (SVI) of 36%, which sits higher than 18% of readings in its annual range, meaning options traders are pricing in low volatility expectations right now.




These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners