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Drug Stock Pops on Partnered Covid-19 Vaccine Update

OCGN options volume is running at five times the intraday average

Deputy Editor
Oct 12, 2021 at 1:26 PM
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The shares of Ocugen Inc (NASDAQ:OCGN) are flying up the charts today, last seen 17% higher to trade at $9. This comes after the biotech name's Indian partner Bharat Biotech International had its Covid-19 vaccine Covaxin recommended for emergency use in children aged 2 to 18. This makes it the second vaccine cleared for use in children in India. Ocugen has yet to receive emergency use authorization from the World Health Organization (WHO).

Brushing off the sideways trading seen over the last couple months, Ocugen stock is now pacing for its highest close since early June. The breakout has OCGN clearing several notable technical hurdles, including the shares' 120- and 180-day moving averages. For context purposes, the stock was trading at 40 cents one year ago.

OCGN Chart 2 October 12 

The options pits are jumping in response to the news. By midday, 126,000 calls and 23,000 puts have exchanged hands, which is five times the amount typically seen at this point. The October 10 is the most popular by far, while new positions are being opened at the 9 and 8.50 calls from the same monthly series. This means these traders see even more upside for Ocugen stock by the time these contracts expire at the end of the week.

 
 

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