2 Biotech Stocks Options Traders Love Today

Options volume is exploding for both ESPR and RXDX today

Deputy Editor
Dec 7, 2022 at 12:16 PM
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At least two biotech stocks are triggering an options trading frenzy today, with Prometheus Biosciences Inc (NASDAQ:RXDX) and Esperion Therapeutics Inc (NASDAQ:ESPR) moving in opposite directions following their respective drug updates. 

Prometheus Biosciences to Move Drug into Phase 3

Last seen up 171.4% to trade at $97.85 and earlier touching an all-time high of $111.99, Prometheus Biosciences stock is set to lock in its best-ever session, following news that the company will move its experimental therapy into Phase 3 clinical trials next year. The treatment PRA023 is for ulcerative colitis and Crohn's disease, and was safe and efficacious in a pair of Phase 2 clinical trials for the same conditions, according to a press release from Prometheus. In the last 12 months, the shares are up 206.7%.

Options traders are excited about the news, though they seem to be betting on RXDX's fall from today's highs. Bearish options volume is running at 12 times the intraday average, with 11,000 puts crossing the tape already today. The most popular contract is the December 90 put, followed by the 55 put in the same series, and new positions are being sold to open at both.

Esperion Therapeutics Cholesterol Drug Meets Main Goal

Esperion Therapeutics announced that a late-stage trial of its drug, Nexletol, met its main goal of lowering the risk of major adverse cardiac events against a placebo. The news earlier sent ESPR to a new annual high of $8.87, but the stock was last seen 8.5% lower to trade at $6.81. The equity boasts a 40.2% year-to-date lead even amid today's pullback

The stock's normally quiet options pits are popping with activity as well, with the 18,000 calls and 5,980 puts that have been traded so far today accounting for 31 times the amount typically seen at this point. The most popular contract by far is the January 20, 2023 7.50-strike call. 



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