Options Bulls Target Pfizer Stock After Vaccine Sales Forecast

Puts were popular before the earnings event

Deputy Editor
Nov 1, 2022 at 10:43 AM
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Pfizer Inc (NYSE:PFE) stock is up 2.6% to trade at $47.76 at last check, after the pharmaceutical giant's better-than-expected third-quarter results. Strong demand for its older drugs gave profits a boost, plus, the company lifted its annual sales forecast for its Covid-19 vaccine.

On the charts, PFE has climbed since its Oct. 11 one-year low of $41.44, though its 120-day moving average appears to be keeping today's gains in check. Year-to-date, the equity is down 19.1%. 

Puts were much more popular than usual leading up to the event. PFE's 10-day put/call volume ratio of 1.27 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 90% of readings from the past year. 

This morning, however, calls rule the roost, with 35,000 exchanged so far compared to just 17,000 puts. The weekly 11/4 50-strike call is the most popular, with new positions being opened there, and overall options volume is running at double what's typically seen. 

These traders are in luck, as PFE's Schaeffer's Volatility Scorecard (SVS) sits at a 98 out of 100. This means the stock has exceeded option traders' volatility expectations during the past year.



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