Put Buyers Pounce Amid Biogen Inc. (BIIB) Pullback

Biogen Inc (BIIB) has been struggling since topping out at $480.18 in late March

Apr 27, 2015 at 2:13 PM
facebook twitter linkedin


Biogen Inc (NASDAQ:BIIB) is struggling in the wake of mixed brokerage attention and an uninspiring day for pharmaceuticals, down 2.6% to trade at $391.15. This negative price action is luring option bears to the table, as puts are crossing at more than twice the pace expected at this point in the day.

Diving right in, the weekly 5/1 380-strike put is seeing notable activity. All indications hint at newly purchased positions at the out-of-the-money strike, suggesting traders foresee BIIB falling below $380 by this Friday's close, when the weekly options expire.

On the charts, the biotech stock has had a nice run in 2015, adding about 15%. While BIIB has pulled back since topping out at a record $480.18 in late March -- and suffered a post-earnings bear gap last week -- it appears the shares have found a foothold this afternoon at their 100-day moving average.

Shifting our attention to the Street, BIIB is well-loved by analysts. In fact, 80% of the brokerage firms tracking the equity recommend buying it, and the average 12-month price target of $480.37 represents a nearly 23% premium to current trading levels, and sits in uncharted territory.

As mentioned earlier, though, Biogen Inc (NASDAQ:BIIB) received more mixed attention during the overnight hours. Specifically, while Nomura boosted its price target to $442 from $401, Oppenheimer started coverage with a tepid "perform" rating, and Morgan Stanley cut its price target to $520 from $524.
 

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! 

 


 


 
Special Offers from Schaeffer's Trading Partners