Call Options Opened After Insys Therapeutics Stock Halt

The June 1 call is popular amid Insys Therapeutics' volatile day

by Josh Selway

Published on Jun 6, 2019 at 1:51 PM

The volatile year is continuing for Insys Therapeutics Inc (NASDAQ:INSY), with the shares soaring 20.7% today to trade at $1.04, earlier getting halted for volatility after a more than 80% surge. This price action follows news from last evening of the company's $225 million settlement with the federal government, while today it was announced that Chairman Steven Meyer has resigned. INSY options trading has picked up as a result.

Jumping right in, more than 2,100 call options have traded, compared to 575 puts, though both are well above the expected pace. The most popular option is the June 1 call, where new positions are opening, and it looks like many trades crossed right after the stock was halted shortly after 10 a.m. ET. Those buying the contract would be expecting Insys to extend its upside above this strike in the coming weeks. On the put side, positions are opening at the June 2 strike, mostly near the bid price.

Not surprisingly, you will probably want to pass on buying premium following today's spike, since it has driven up volatility expectations so much. Specifically, the 30-day at-the-money implied volatility was last seen at an annual high of 219.5%.

It'll be interesting to see if any INSY analysts respond to the news. There are still four brokerage firms tracking the equity, and the average 12-month price target among them is $5.60. The most recent move seen from this group was from May 14, when Janney downgraded its opinion to "neutral" from "buy." Ending with a close view of the charts, today's current price still leaves the shares below the 20-day moving average.

insy stock june 6


a schaeffer's exclusive

5 HOT STOCK PICKS

Heat up your summer trading with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Become a Master of Moving Averages
How you can transform lagging indicators into leading indicators.
Impressive NASH Drug Data Sends Pharma Stock Up Again
BMO just downgraded DOW stock to "market perform"
Red-Hot Disney Stock Slapped With Rare Downgrade
The bear note comes amid valuation concerns
Become a Master of Moving Averages
How you can transform lagging indicators into leading indicators.