Novo Nordisk (NYSE:NVO) stock is down 1% at $49.14, after the drugmaker filed a lawsuit against rival Eli Lilly (LLY), citing misleading advertising for its GLP-1 drugs. The company said it wants Lilly to issue an apology and corrective advertising. Novo also had a GLP-1 dispute with Hims & Hers Health (HIMS) earlier this year.
NVO is below its year-to-date breakeven level, an area that roughly coincides with its 320-day moving average. The shares have been consolidating near the $50 level this month, which NVO hasn't seen since February.
Plus, bulls have been circling. This is per the 10-day put/call volume ratio of 6.82 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 78th percentile of its annual range. Echoing this, Novo Nordisk's Schaeffer's put/call open interest ratio (SOIR) of 0.74, which sits in the 92nd percentile of its annual range.
There remains plenty of room for upgrades, should the heavily bearish sentiment begin to unwind. Heading into today, 21 of the 23 brokerages in coverage sport a "hold" or "strong sell" recommendation.
The equity sports an Schaeffer's Volatility Scorecards (SVS) reading of 98 out of 100, suggesting NVO has realized higher volatility than its options have priced in over the past 12 months.
