Calls are hot on the small-cap stock
Novavax, Inc. (NASDAQ:NVAX) is surging higher today -- and bucking the broad-market sell-off -- last seen up 29.3% at $5.55, after H.C. Wainwright boosted its price target to $17 from $10. This new price target represents NVAX's intraday peak from March 1, the day after a massive bear gap. The shares had been grinding lower since then, eventually hitting a record low of $4.01 yesterday. However, with NVAX set to close atop its 50-day moving average for the first time since February, options traders are betting bullishly.
So far, more than 2,700 calls have traded, compared to an average daily volume of just 289. New positions are opening at the August 6 call, as well as the September 5.50 call. Those buying the contracts would be betting on more upside in the days and weeks ahead for the shares.
Looking back at the past 10 weeks on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), calls and puts have seen a pretty even split in buy-to-open activity. However, January 2020 calls account for the top eight open interest positions.
Despite the stock's technical struggles, analysts still love it, with four of six in coverage handing out "strong buy" recommendations. At the same time, short interest accounts for 6.5 days' worth of buying power, based on average trading volumes.