Spotlight on Vertex Pharmaceuticals: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Vertex Pharmaceuticals VRTX.

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 VRTX, 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 19 uncommon options trades for Vertex Pharmaceuticals.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 42%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $201,378, and 17 are calls, for a total amount of $1,435,690.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $370.0 and $700.0 for Vertex Pharmaceuticals, spanning the last three months.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Vertex Pharmaceuticals's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Vertex Pharmaceuticals's significant trades, within a strike price range of $370.0 to $700.0, over the past month.

Vertex Pharmaceuticals Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

About Vertex Pharmaceuticals

Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease. Additionally, Vertex is evaluating small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.

Following our analysis of the options activities associated with Vertex Pharmaceuticals, we pivot to a closer look at the company's own performance.

Vertex Pharmaceuticals's Current Market Status

• Trading volume stands at 647,404, with VRTX's price up by 4.99%, positioned at $496.38.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 90 days.

Expert Opinions on Vertex Pharmaceuticals

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $500.2.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from JP Morgan has decided to maintain their Overweight rating on Vertex Pharmaceuticals, which currently sits at a price target of $503. * An analyst from Oppenheimer has decided to maintain their Outperform rating on Vertex Pharmaceuticals, which currently sits at a price target of $540. * Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Vertex Pharmaceuticals with a target price of $541. * An analyst from Scotiabank downgraded its action to Sector Perform with a price target of $480. * Consistent in their evaluation, an analyst from RBC Capital keeps a Sector Perform rating on Vertex Pharmaceuticals with a target price of $437.

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 Vertex Pharmaceuticals, Benzinga Pro gives you real-time options trades alerts.