Schaeffer's Top Stock Picks for '25

Puts Popular as Vertex Pharmaceuticals Extends Pullback

VRTX put volume has reached an annual high today

Managing Editor
Oct 18, 2018 at 3:06 PM
facebook X logo linkedin


Proteostasis Therapeutics (PTI) scored a big win after reporting positive data for its cystic fibrosis drug in an early stage study. In response, sector peer Vertex Pharmaceuticals, Inc. (NASDAQ:VRTX) is lower today, down 3.5% to trade at $179.02, at last check. Options traders are hitting overdrive on Vertex today, with puts in focus.

Diving right in, nearly 3,200 puts have been traded -- seven times what's typically seen at this point in the day, with volume already at an annual high. Much of the action has centered at the April 155 put, where Trade-Alert indicates new positions being opened. Also popular is the January 2019 series, where data suggests a possible three-way spread involving the 130- and 165-strike puts and the 200-strike call.

More broadly, there's been a heavier-than-usual bearish bias among options traders within the past two weeks. Amid light absolute volume, VRTX's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 2.13, and ranks in the 100th annual percentile, showing an extreme interest in put buying relative to call buying. 

Looking at the charts, Vertex stock raced to a record high of $194.92 on Oct. 1. Overall, the equity has added 17% in 2018, although the shares are still headed toward their third straight weekly loss. The stock is now trading near its 100-day moving average, though, which emerged as support earlier this month.

Daily Stock Chart VRTX

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?