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

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

by Karee Venema

Published on Mar 13, 2015 at 1:28 PM
Updated on Jun 24, 2020 at 10:16 AM

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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