Q2 STOCKS TO BUY

Options Volume Spikes on Sinking Perrigo Stock

Day traders are targeting the December 45 call

Dec 21, 2018 at 2:44 PM
facebook X logo linkedin


Perrigo Company (NYSE:PRGO) said it has been ordered by Ireland to pay $1.9 billion in back taxes for 2013. The bill comes after it was found that intellectual property sales of Elan Pharma -- which Perrigo acquired in 2013 in a corporate tax inversion -- were taxed incorrectly. In reaction, PRGO stock is down 26.5% to trade at $38.47, earlier hitting a nine-year low of $38.13.

This negative price action is nothing new for the over-the-counter pharmaceutical firm. Today's drop puts PRGO shares on track for their seventh straight loss, the longest daily losing streak since October 2017. Plus, the equity is pacing for a 45.8% quarterly loss -- its worst on record -- and has shed 55.9% year-to-date.

prgo stock daily price chart on dec 21

Perrigo options are flying off the shelves today, with around 6,500 calls and 2,000 puts on the tape, 15 times what's typically seen. Eleventh-hour traders are targeting the December 40 calls, where at least some of the activity appears to be of the buy-to-open kind.

Other speculators may be initiating new positions at the February 45 call, though there appears to be a mix of buying and selling occurring. Those purchasing the calls expect PRGO stock to climb back above $45 by February options expiration, while those writing the calls are betting the strike will serve as a short-term ceiling.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter