Regeneron Pharmaceuticals, Inc. (REGN) Sees Bump In Call Activity

Regeneron Pharmaceuticals Inc's (REGN) calls are crossing at five times the normal rate

Digital Content Group
Feb 19, 2015 at 1:34 PM
facebook twitter linkedin

Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is up 4.6% today at $424.31, after its drug for vision loss, Eylea, outperformed competitors in a study. As a result, calls are trading at five times normal levels in REGN's options pits, with speculators eyeing the February 425 call. Data shows buy-to-open activity here, as traders look for the equity to rally above $425 by tomorrow's close, when the contracts expire. REGN has already reached an intraday high of $428.47.

This bullish betting echoes the recent trend in the stock's options pits, as call buying has been hot the past two weeks. REGN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.44 is higher than 80% of similar readings from the past year.

The shares of REGN have been a favorite of short sellers, however, so some of this recent call buying could be bearish traders seeking out a hedge. Specifically, 4.6 million shares of REGN are sold short, representing over a week's worth of trading, at normal daily volumes.

Today's gains put Regeneron Pharmaceuticals Inc (NASDAQ:REGN) back in the black on a year-to-date basis -- 3.4% higher, to be exact. The shares could now be seeing a lift from their 20-week moving average, which has acted as support in the past.

Weekly Chart of REGN Since June 2014 With 20-Week Moving Average

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1