Intrexon Corp (XON) Plunge Sparks Bearish Betting

Intrexon Corp (NYSE:XON) is plummeting today on a scathing Seeking Alpha report

Apr 21, 2016 at 3:25 PM
facebook X logo linkedin


Intrexon Corp (NYSE:XON) has plunged 26.7% to $27.00 -- and is on track for its worst single-day percentage drop since the biotech went public in August 2013. Sparking the day's sell-off is a scathing review in Seeking Alpha, which called XON the "Theranos of public markets." Against this backdrop, XON stock has been placed on the short-sale restricted list, while volume both in and out of the options arena has hit an annual high.

By the numbers, about 12.5 million shares of XON have traded today. Meanwhile, nearly 17,000 calls have changed hands on XON, compared to 7.500 puts. Most active are the June 32 put and 35 call, where it appears as if one speculator could possibly be initiating a synthetic short position. Elsewhere, sell-to-open activity may be occurring at XON's May 30 and 35 calls.

Longer term, call buying has been a popular strategy on XON in recent weeks, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, XON's 10-day call/put volume ratio of 12.88 ranks in the 77th percentile of its annual range.

Echoing this call-skewed backdrop is XON's Schaeffer's put/call open interest ratio (SOIR) of 0.37, which sits lower than 67% of all comparable readings taken in the past year. Simply stated, short-term speculators are more call-heavy than usual toward the biotech stock. With 34% of the stock's float sold short, though, some of the recent call buying -- particularly at out-of-the-money strikes -- could be a result of shorts hedging against any upside risk.

In fact, heading into today's session, the stock had roughly doubled since hitting an annual low of $18.52 in mid-January -- although the round-$40 mark had recently rejected these advances. Today's plunge, however, has the shares of Intrexon Corp (NYSE:XON) on track to notch their lowest daily close since Jan. 27.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

 

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