NVAX last week hit its highest level since October
Novavax Inc. (NASDAQ:NVAX) shares are up 3.3% to trade at $8.27 at last glance, after the vaccine company singed a licensing agreement -- worth up to $500 million, including a $30 million upfront payment -- with Pfizer (PFE) for use of its Matrix-M adjuvant for up to two disease areas.
NVAX has added a 65% from its April 10 low of $5.01, and last week hit its highest level since October after a bounce off support at the $6.50 level. Should these gains hold, the biotech stock will secure its third gain in the last five sessions.
The brokerage bunch is split, with five analysts maintaining a "strong buy" rating, while five call NVAX a "hold" or worse. What's more, short interest makes up 36.9% of the security's available float.
Options traders have been overwhelmingly bullish, per NVAX's 50-day call/put volume ratio of 29.67 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than all readings from the past year.
It's also worth noting NVAX's Schaeffer's Volatility Index (SVI) of 57% stands higher than just 18% of all other readings from the past year, suggesting near-term option traders are pricing in relatively low volatility expectations.