Bullish Traders Eye New Highs for Pfizer Inc. (PFE)

Pfizer Inc. (PFE) has found support from two trendlines

Digital Content Group

Apr 9, 2015 at 2:41 PM

Call volume is accelerated today in Pfizer Inc.'s (NYSE:PFE) options pits. The contracts are running at a 65% mark-up to typical intraday volumes, with heavy activity -- possibly of the buy-to-open variety -- taking place at the weekly 4/10 35.50-strike and June 36 calls. Traders purchasing the contracts are hoping for the shares to eclipse the strikes before the options' respective expirations at tomorrow's close and the close on Friday, June 19.

Late last month, PFE hit a decade-plus high of $35.45 amid some upbeat drug news, and during the last two months, the shares' returns have roughly matched that of the S&P 500 Index (SPX). Now, it appears the security may have found a home on top of its 20- and 40-day moving averages, and at last check, was up 0.4% at $34.79.

Daily chart of PFE Since January 2015 with 20-day and 40-day Moving Averages

The majority of analysts are in the bulls' corner for Pfizer Inc. (NYSE:PFE). Of the 14 brokerage firms with coverage on the equity, nine rate it at least a "buy." Elsewhere, bearish bettors seem to be changing their tune on PFE. Short interest on the shares decreased by nearly 25% during the past two reporting periods. However, it would still take over a week to buy back these bets, at typical daily volumes.

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