Novo Nordisk A/S (NYSE:NVO) is pointed sharply lower before the open after the drugmaker said its Phase 3 trial of ziltivekimab failed to significantly reduce major adverse cardiovascular events compared to a placebo. While the experimental treatment showed biological activity, it did not meet the study's primary endpoint. At last glance, NVO was down 8.2% in premarket trading.
The pullback has NVO looking to snap a five-day winning streak. Shares recently climbed to five-month highs, with the 30-day moving average providing support throughout July. If these losses hold, however, the stock will sink into negative territory on a year-to-date and year-over-year basis.
Options traders have shown a preference for calls. Novo Nordisk's 50-day call/put volume ratio of 6.49 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 75% of annual readings.
Notably, the stock's Schaeffer's Volatility Scorecard (SVS) of 99 out of 100 indicates the shares have consistently exceeded options traders' volatility expectations over the past year.
