High-rolling investors have recently shown a bullish sentiment towards Biogen (BIIB) in the options market. This significant move in BIIB has caught the attention of retail traders, as it often indicates that someone may have privileged information. While the identities of these investors remain uncertain, their actions suggest a positive outlook for the pharmaceutical company.
Benzinga’s options scanner detected 11 options trades for Biogen, which is not a typical pattern. Among these trades, 81% of the sentiment was bullish, while 18% was bearish. The options trades included one put option worth $155,000 and 10 call options totaling $552,281.
Analyzing the volume and open interest in these contracts, it appears that these major traders have been eyeing a price window of $220.0 to $255.0 for Biogen over the past quarter. This suggests that they anticipate the stock price to reach this range within a specific time frame.
In terms of liquidity and interest, the mean open interest for Biogen options trades today is 197.2, with a total volume of 3,554.00. This indicates a substantial level of activity and engagement in the options market for Biogen.
Looking at the volume and open interest of call and put options for Biogen within a strike price range of $220.0 to $255.0 over the last 30 days, we can observe the development of these trades. This information can provide valuable insights into the sentiment and expectations of these high-rolling investors.
Biogen, which merged with Idec in 2003, markets multiple sclerosis drug Avonex and collaborates with Roche to market cancer drug Rituxan and next-generation antibody Gazyva. The company also markets other multiple sclerosis drugs and has various drug candidates in phase 3 trials in neurology-related fields.
Moving on to Biogen’s current market status, the stock is currently trading at $240.98 with a volume of 535,441. While the stock has experienced a slight decline, RSI indicators suggest that it is currently neutral between overbought and oversold. Additionally, the next earnings release is expected in 1 day.
According to market experts, the consensus target price for Biogen is $282.33. UBS has revised its rating downward to Neutral with a price target of $276, reflecting concerns. On the other hand, Oppenheimer has revised its rating downward to Outperform with a price target of $295.
Options trading carries higher risk compared to trading the stock directly, but it also offers higher profit potential. Serious options traders mitigate this risk by educating themselves, scaling in and out of trades, following multiple indicators, and closely monitoring the markets. Staying updated on the latest options trades for Biogen can be done through Benzinga Pro, which provides real-time options trade alerts.
In conclusion, the bullish sentiment from high-rolling investors towards Biogen in the options market suggests positive expectations for the company’s future. Retail traders should pay attention to these actions and consider the potential opportunities in the stock. However, it is important to conduct thorough research and exercise caution when entering the options market.
