Drug maker Novo Nordisk (NYSE:NVO) is sinking 7.8% to trade at $43.87 this morning, earlier hitting a more than four-year low of $43.37 after sharing disappointing trial data for its Alzheimer's drug, semaglutide. The oral medication failed to pare back progression in the memory-loss disease.
NVO has been on a steep, downward trajectory since topping out at a record high of $148.15 in June of 2024. The 120-day moving average has loomed as overhead resistance, capping several breakout attempts this past year. Over the past 12 months, Novo Nordisk stock has shed 58%.
Despite its long-term technical weakness, call traders have been circling. This is per the security's 10-day call/put volume ratio of 5.75 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which is higher than 98% of readings from the past year. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.59 also stands in the 12th percentile of readings from the past 12 months.
Traders have come out in droves today as well. So far, 94,000 calls and 62,000 puts have been exchanged, quadruple the average intraday pace. Most popular is the December 39 put, where a large number of contracts are being sold to open.
What's more, NVO tends to outperform options traders' volatility estimates. This is evidenced by its Schaeffer's Volatility Scorecard (SVS) of 87 out of 100.
