Regeneron Pharmaceuticals, Inc. (REGN) Calls Hot Ahead of Key Data

Regeneron Pharmaceuticals Inc (REGN) calls are trading at an accelerated clip today

Mar 13, 2015 at 1:28 PM
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Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is up 0.8% this afternoon at $428.73, after CNBC's Jim Cramer waxed optimistic on the company's pipeline ahead of a key data presentation at the American College of Cardiology's 63rd Annual Scientific Session later this month. The positive price action has sparked a rush of activity in the equity's option pits, with calls trading at nearly two times what's typically seen at this point in the day, and outpacing puts by a more than 2-to-1 margin.

Most active is REGN's weekly 3/13 435-strike call, where it seems eleventh-hour speculators are purchasing new positions to bet on a surge north of $435 by tonight's close, when the weekly series expires. Elsewhere, the equity's March 445 call has also received notable attention, and appears to be seeing a mix of buy- and sell-to-open activity. By initiating the long calls, traders expect REGN to power north of $445 -- and into record-high territory -- by next Friday's close, when front-month options expire. Meanwhile, those writing the calls to open are gambling on the $445 area to serve as a short-term ceiling for the security. Delta on the call is docked at 0.18, suggesting a less than 1-in-5 shot of an in-the-money finish.

From a wider sentiment perspective, today's accelerated call activity is just more of the same for a stock that's tacked on 59% since hitting an annual low of $269.50 last June. Specifically, Regeneron Pharmaceuticals Inc's (NASDAQ:REGN) 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.03 ranks in the 81st annual percentile.

Daily Chart of REGN Since June 2014
 

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