AstraZeneca Stock Could Soon Break Higher According to Technical Setup

AZN has a solid technical foundation on the charts

May 10, 2022 at 2:00 PM
facebook X logo linkedin

Biopharmaceutical stock AstraZeneca PLC (NASDAQ:AZN) settled around the $64.52 level on Friday, which also marks its $200 billion market cap as well as two prior highs in November 2021 and July 2020. Considering this solid technical setup, now looks like the perfect time to buy calls on AZN.
An unwinding of pessimism amongst options traders could put additional tailwinds at the stock’s back. Its Schaeffer’s put/call open interest ratio (SOIR) of 1.10 stands higher than 94% of readings from the past year, meaning short-term options traders are extremely put-biased right now. What’s more, similar readings have had bullish implications for AZN in the past.

AZN Wt repost

Echoing this, the stock’s 10-day put/call volume ratio of 1.23 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 94th percentile of its annual range. In other words, long puts are being picked up at a much quicker-than-usual clip.
Switching gears, while it looks like shorts have been targeting the stock, with short interest up 40% in the most recent reporting period, the stock is up about 15%, which in turn, implies strength.
AstraZeneca could also be the recipient of some fresh analyst coverage. Just five analysts currently cover the stock, with four at a “strong buy,” and one at a “hold” rating.
Finally, our recommended call option has a leverage ratio of 6.5 and will double in a 16.1% rise in the underlying stock.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this AZN commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI