Call Traders Blast Pfizer Stock After Takeover Update

Call volume is running at double the intraday average

Deputy Editor
Dec 12, 2023 at 11:59 AM
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Bullish options traders are having a field day with Pfizer Inc. (NYSE:PFE), after the pharma company received all the regulatory approvals necessary to finalize its $43 billion acquisition of Seagen (SGEN) and its cancer therapies. The deal was approved after Pfizer agreed to donate the rights of royalties from sales of cancer drug Bavencio, addressing concerns from U.S. antitrust regulators.

So far today, 95,000 calls have crossed the tape, which is double the intraday average volume. The two most popular contracts, the respective December 29 and 29.50 calls, are seeing new positions being bought to open. 

This interest in bullish bets means options traders see hope for the struggling security. Over the course of 2023, PFE shed 44.3%, with its 100-day moving average capping a mid-June rally, and its 40-day trendline providing resistance more recently. Pfizer stock was last seen flat at $28.64.

PFE Chart December 122023

While options traders are overwhelmingly optimistic, Morgan Stanley is less so. The Wall Street firm cut its price target to $31 from $37. There's room for more adjustments lower, too, considering the equity's 12-month consensus price target of $37.70 is a 31.9% premium to current levels. 

 

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