Pharma giant Novo Nordisk A/S (NYSE:NVO) is plunging 21% to trade at a nearly three-year low of $54.27, after the company's surprise cut to its full-year guidance due to a lower sales outlook for several drugs. The Danish drugmaker also named Maziar Mike Doustdar as its new CEO.
NVO has been struggling on the charts since its late-April bottom at $57, with recent pressure at the $70 region. So far in 2025, the stock has shed 37.3%. Should these losses hold, today's plunge will mark the shares' worst daily drop on record.
Call traders were flocking to the equity ahead of earnigns. Novo Nordisk stock's 50-day call/put volume ratio of 2.87 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all other readings from the past year.
Both call and put traders are targeting NVO straight out of the gate this morning, with options volume already at double the amount typically seen in an entire day. The September 45 put is the most popular, with new positions being sold to open there.
It's also worth noting that the stock has tended to outperform volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 79 out of 100.
