Short-Term Traders Descend On Intrexon Corporation (XON)

Intrexon Corp (XON) is surging on a deal with Merck Serono

by

Published on Mar 30, 2015 at 11:00 AM
Updated on Apr 20, 2015 at 5:09 PM

Intrexon Corp (NYSE:XON) has shot 5.3% higher to $45.26, after the company announced a collaboration with Merck Serono -- the biopharmaceutical business of Germany's Merck KGaA* -- to develop and commercialize various cancer therapies. As such, XON options are flying off the shelves at 10 times the expected intraday pace.

Most active is the April 40 call. It appears traders are both buying to open and selling to close positions here.

Longer term, XON has advanced upwards of 64% on a year-to-date basis. In fact, during the past 60 sessions, the stock has outperformed the broader S&P 500 Index (SPX) by a brow-raising 56 percentage points.

As such, call buying has been in vogue. Intrexon Corp's (NYSE:XON) 10-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 13.91 -- with nearly 14 calls bought to open for every put during the past two weeks. Historically speaking, this ratio outstrips more than three-quarters of all comparable readings from the previous year.

Daily Chart of XON since January 2015

*The original text of this post described Merck Serono as a unit of Merck & Co., Inc. (NYSE:MRK). We regret the error.


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report 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


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Stocks Eye Notable Weekly Gains on 3-Day Surge
Stocks are eyeing big weekly gains
WW Stock Brushes Off Bull Note
Morgan Stanley upgraded the Weight Watchers parent to "overweight" from "equal weight"
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.