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