Pfizer reported top and bottom line beats in the first quarter
The shares of Pfizer Inc. (NYSE: PFE) are down 0.8% to $ 39.62 on its most recent review, despite the drugmaker reporting first-quarter profits and sales that exceeded Wall Street forecasts. The company also raised its full-year guidance after Covid-19 vaccine sales came in at $ 3.5 billion, which was higher than expected. Pfizer also plans to apply for full US approval for its vaccine by the end of May. Federal officials said the Food and Drug Administration (FDA) is slated to approve filing of the vaccine for teenagers ages 12 to 15 in an interview with the New York Times.
On the charts, Pfizer shares previously hit a new annual high of $ 40.10. Equity got off to a strong start before pulling back in late February, though that pulling back found support near the $ 33 level, catapulting equity higher. The 20-day moving average has helped along the way, seeing a decline in early April. PFE is now up 20.5% in 2021.
Options traders on both sides of the aisle are now aiming for safety with great enthusiasm. In the first hour of trading, 49,000 calls and 13,000 puts changed hands, which is four times what it was at this point in time. By far the most popular is the weekly 5 / 7-40 strike call, followed by the 40 call in the monthly May series.
Meanwhile, the option pits have been mostly bearish for the past 10 weeks. This corresponds to PFE’s 50-day put / call volume ratio on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which are in the 99th percentile of their annual bandwidth and display puts can be picked up faster than usual.
Now it seems like a great opportunity to bet on the next move in Pfizer stock with options. The Schaeffer volatility index (SVI) of the security of 30% is above 25% of the measured values of the last 12 months. Put simply, the share currently has bonuses at attractive prices. In addition, the Schaeffer Volatility Scorecard (SVS) for the share is 86 out of a possible 100 points. This means that PFE has exceeded those volatility expectations over the past year – a boon for option buyers.