What the Options Market Tells Us About Novo Nordisk

Investors with a lot of money to spend have taken a bearish stance on Novo Nordisk NVO.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NVO, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 28 uncommon options trades for Novo Nordisk.

This isn't normal.

The overall sentiment of these big-money traders is split between 35% bullish and 64%, bearish.

Out of all of the special options we uncovered, 13 are puts, for a total amount of $410,794, and 15 are calls, for a total amount of $813,779.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $97.5 to $180.0 for Novo Nordisk over the recent three months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Novo Nordisk stands at 1069.0, with a total volume reaching 4,151.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Novo Nordisk, situated within the strike price corridor from $97.5 to $180.0, throughout the last 30 days.

Novo Nordisk 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

About Novo Nordisk

With roughly one third of the global branded diabetes treatment market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments such as GLP-1 therapy, oral antidiabetic agents, and obesity treatments. Novo also has a biopharmaceutical segment (constituting roughly 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.

Present Market Standing of Novo Nordisk

• With a trading volume of 2,493,056, the price of NVO is up by 2.44%, reaching $127.26.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 59 days from now.

Expert Opinions on Novo Nordisk

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $140.0.

• In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Overweight, setting a price target of $140.
• An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $140.
• Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Overweight with a new price target of $140.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Novo Nordisk, Benzinga Pro gives you real-time options trades alerts.