Bulls Storm Surging Novavax, Inc. (NVAX)

Novavax, Inc. (NVAX) calls are trading at an accelerated pace

Digital Content Group

Mar 27, 2015 at 1:57 PM

NVAX

Novavax, Inc. (NASDAQ:NVAX) is gaining fast today, adding 8.8% to land at $8.25, thanks to a "buy" initiation and $10 price target from Citigroup. Also, the brokerage firm expressed optimism over a pair of vaccines the company is developing. Call buying has since picked up in the stock's options pits, with the contracts crossing at an 80% mark-up to usual intraday volumes. The most popular contract by a wide margin is the April 8 call, and data gives the impression of buy-to-open activity. These traders are betting on the shares to move further above the $8 level by the close on Friday, April 17, when the options expire.

It's not a surprise to see NVAX's traders rushing to pick up calls. According to the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.40 -- which ranks in the 8th percentile of its annual range -- short-term speculators are more call-skewed than normal.

Analysts have made their positive feelings on the stock clear, with all five covering brokerage firms rating it a "strong buy." Also, Novavax, Inc.'s (NASDAQ:NVAX) average 12-month price target of $10.38 stands in territory not charted in roughly 13 years. Year-to-date, NVAX has added 39%.

Follow @Schaeffers

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!