Novo Nordisk A/S (NYSE:NVO) stock is up 8.8% to trade at $52.37 at last check, after the biopharmaceutical giant received approval from the U.S. Food & Drug Administration (FDA) for the first ever GLP-1 pill. The company noted the drug will be available in early January via pharmacies and select telehealth providers, with saving offers starting at $149 per month.
NVO is today trading at its highest level since October and pacing for its best single-day percentage gain since April. The stock is also on track for its fourth-straight gain, though overhead pressure at the $190 level has capped gains since its Oct. 29, record high of $212.19. In the last nine months, Novo Nordisk stock has added more than 52%.
For such an outperformer, its noteworthy that of the 21 brokerages covering NVO, 13 maintain a "hold" or worse rating. A round of overdue upgrades could keep the wind at the equity's back.
Options traders are out in droves. At last look, 137,000 calls and 20,000 puts have crossed the tape so far, which is six times the volume typically seen at this point. Most popular is the weekly 12/26 48.50-strike call, with new positions now being opened at the 53-strike call.
Options look like a solid route when betting on the stock's next moves, per its Schaeffer's Volatility Index (SVI) of 37% that ranks in the 11th percentile of readings from the last 12 months. This means options traders are pricing in low volatility expectations. It's also worth noting that NVO also tends to outperform options traders' volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 87 out of 100.
