Achillion Pharmaceuticals, Inc. (ACHN) Options In Demand as Stock Rallies

Achillion Pharmaceuticals, Inc. (ACHN) reportedly canceled a conference appearance, sending the shares (and option volume) soaring

May 18, 2015 at 1:57 PM
facebook X logo linkedin


Biotech issue Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) zoomed higher around midday, amid reports the company canceled a presentation at today's UBS Global Healthcare Conference.  At last look, the stock was up 11% at $10.62. Against this backdrop, ACHN options are in demand, trading at 12 times the average intraday pace. What's more, the stock's 30-day at-the-money implied volatility rocketed 49.1% higher to 85%. 

ACHN calls have outnumbered puts by a more than 5-to-1 margin, with roughly 28,000 contracts exchanged. Most active is the equity's out-of-the-money September 15 call, where more than 8,000 contracts have traded. Digging deeper, a healthy portion of the calls appear to have been bought to open, suggesting the buyers are expecting ACHN to muscle north of the strike -- a rally of 41.2% from the stock's current price -- by the close on Friday, Sept. 18, when the options expire. 

However, considering 15.4% of ACHN's float is dedicated to short interest -- representing six sessions' worth of pent-up buying demand, at the equity's average pace of trading -- it's possible that the appetite for out-of-the-money calls could be attributable to short sellers seeking near-term protection. 

Whatever the motive, today's affinity for long calls is just more of the same for ACHN. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio sits at a whopping 17.98 -- higher than 94% of all other readings from the past year. Furthermore, short-term traders have been picking up ACHN options at a relative steal; the security's Schaeffer's Volatility Index (SVI) of 58% is lower than 99% of all other readings from the past year. 

Technically speaking, Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) is on pace to end in double-digit territory for the first time since April 24. Furthermore, the stock is set to topple its 50-day moving average for the first time since Feb. 3, but remains 13.3% lower year-to-date.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI