Bulls Storm Surging Novavax, Inc. (NVAX)

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

by

Published on Mar 27, 2015 at 1:57 PM
Updated on Apr 20, 2015 at 5:32 PM

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%.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Patent Lawsuit Loss Sends AMRN Stock Spiraling
Amarin just lost a major U.S. patent lawsuit for its heart drug Vascepa
RH Stock Sinks Despite Earnings Beat
J.P. Morgan Securities and Cowen and Company cut their price targets
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.