Teva Pharmaceutical Option Bull Makes a Bold Bet

TEVA stock has struggled on the charts in recent months

Mar 26, 2019 at 2:21 PM
facebook X logo linkedin


Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is in the news today, after OxyContin maker Purdue Pharma and several members of the Sackler family, which own the company, reached a $270 million settlement with the state of Oklahoma over a 2017 lawsuit that accused Purdue Pharma, Johnson & Johnson (JNJ), and Teva Pharmaceutical of deceptive marketing practices that helped fuel an opioid abuse epidemic. Claims against JNJ and TEVA are still pending.

TEVA stock has struggled to find direction in the wake of the news, trading on both sides of breakeven today. At last check, the equity was up 0.2% at $15.93, looking to snap its two-day losing streak. Longer term, the shares have shed more than 21% since an unsuccessful test of the round $20 region and 320-day moving average in early February, with a recent rally attempt quickly contained by the security's 30-day trendline.

teva stock daily chart march 26

Nevertheless, call volume has exploded today, with nearly 107,000 contracts on the tape -- 12 times the average intraday amount and 32 times the number of puts exchanged. Trade-Alert highlights a bold play using the January 2020 17.50-strike and 22.50-strike calls, where more than 100,000 contracts have collectively traded.

Specifically, it looks as if one trader bought to open 40,000 17.50-strike calls for $1.65 each, while simultaneously selling to open 60,000 22.50-strike calls for 42 cents apiece. Trade-Alert suggests by initiating the 2x3 call ratio spread, the speculator is targeting a move to $22.50 by January 2020 options expiration, a 41% rally from current levels.

 

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