Spotlight on Biogen: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Biogen BIIB.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with BIIB, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 8 uncommon options trades for Biogen.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $238,170, and 3 are calls, for a total amount of $333,500.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $200.0 and $230.0 for Biogen, spanning the last three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Biogen's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Biogen's whale trades within a strike price range from $200.0 to $230.0 in the last 30 days.

Biogen Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Biogen

Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel multiple sclerosis drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is copromoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with Sobi) were spun off as part of Bioverativ in 2017. Biogen's newer products include Spinraza (SMA, with partner Ionis), Leqembi (Alzheimers, with partner Eisai), Skyclarys (Friedreich's Ataxia, Reata), Zurzuvae (post-partum depression, Sage), and Qalsody (ALS, Ionis). Biogen has several drug candidates in phase 3 trials in neurology-related fields.

After a thorough review of the options trading surrounding Biogen, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is Biogen Standing Right Now?

• Currently trading with a volume of 536,620, the BIIB's price is up by 0.09%, now at $219.5.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 36 days.

What Analysts Are Saying About Biogen

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $314.25.

• Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for Biogen, targeting a price of $277.
• An analyst from Canaccord Genuity has decided to maintain their Buy rating on Biogen, which currently sits at a price target of $305.
• In a cautious move, an analyst from RBC Capital downgraded its rating to Outperform, setting a price target of $364.
• An analyst from Cantor Fitzgerald has revised its rating downward to Overweight, adjusting the price target to $311.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Biogen options trades with real-time alerts from Benzinga Pro.