2 Medical-Device Stocks Lighting Up the Options Pits

Medical-device stocks Cooper Companies Inc (NASDAQ:COO) and Axogen Inc (NASDAQ:AXGN) are both sharply lower following separate company developments, and options traders are chiming in. 

Cooper Companies stock is down 14.9% at $54.04 at last check, plummeting to nine-year lows after the company reported a fiscal third-quarter revenue miss and issued a disappointing fourth-quarter forecast. BofA Global Research and Piper Sandler both downgraded the shares in response, while a flood of other analysts lowered their price targets. COO is now down roughly 35% year to date.

Options traders are responding to the plunge, with overall volume being 2.7 times the intraday average. Bearish activity is especially elevated, as puts are trading at 17 times the volume typically seen at this point. The September 50 and 65 puts are the most active contracts. 

Axogen stock is down 6.7% at $44.10, after the peripheral nerve repair specialist priced an underwritten public offering of 4.91 million shares at $42.50 apiece. The offering is expected to generate roughly $208.7 million in gross proceeds, which the company plans to use primarily to fund its previously announced acquisition of BioCircuit Technologies. Despite today's pullback, AXGN is still up roughly 37% year to date.

AXGN is also seeing a surge in options activity -- 7.4 times the usual daily volume so far. Call volume is running at 24 times the expected intraday amount. The September 50 call is the most popular contract, while new positions are being sold to open at the October 60 and 65 calls.