ISIS Pharmaceuticals, Inc. (ISIS) Traders Take Heed to Cramer

ISIS Pharmaceuticals, Inc. calls are flying off the shelves today

Dec 19, 2014 at 1:24 PM
facebook twitter linkedin


ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) is in rally mode today -- up 8.8% at $64.79, and earlier topping out at a record peak of $67.12 -- following bullish comments made by CNBC's Jim Cramer. Against this backdrop, calls are trading at eight times the average intraday clip, and per the equity's 30-day at-the-money implied volatility, which is up 6.5% to 59%, short-term contracts are in high demand.

In the soon-to-be front-month series, traders are targeting the January 2015 65- and 70-strike calls. Drilling down, there appears to be some buy-to-open activity here, as traders roll the dice on a bigger run into uncharted territory over the next four weeks.

From a wider sentiment perspective, options traders have shown a growing affinity for puts over calls among options slated to expire in three months or less. In fact, since Nov. 21 -- when November options expired -- the stock's Schaeffer's put/call open interest ratio (SOIR) has edged up to 0.88 from 0.82. What's more, the current ratio ranks in the 64th annual percentile, meaning short-term speculators are more put-heavy than usual toward the shares.

Thanks to today's surge, ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) is now boasting an impressive 63% year-to-date lead. An extended run into uncharted territory could prompt another round of upbeat analyst attention. At present, one-third of those covering the shares maintain a "hold" or "sell" suggestion, while the consensus 12-month price target of $55.90 stands at a discount to current trading levels.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners