Nektar Therapeutics Options Volume Skews Bullish Amid Sharp Stock Decline

A significant divergence has emerged between the stock performance and options market sentiment for Nektar Therapeutics (NKTR). While the company's shares fell over 3% on Tuesday, options data revealed exceptionally bullish activity, with call volume outpacing put volume by a ratio of approximately 27.5-to-1.

Heavy Call Buying Targets 2027

The surge in bullish bets was highlighted by heavy trading in long-dated call options, according to an Investing.com report. The most active contract was the January 15, 2027 $70 call, which saw 509 contracts traded. This activity suggests traders are positioning for a significant upside move over the next year and a half.

The $70 strike price notably aligns with a price target set by Wedbush in March. The firm initiated coverage with a Neutral rating, citing risks associated with the clinical trial for rezpegaldesleukin. Traders buying these calls are effectively wagering on a positive outcome for future clinical data, including Phase 3 results for atopic dermatitis and a planned 2027 proof-of-concept readout for a new indication.

Volatility Metrics Signal Fading Fear

Adding a layer of complexity to the trading action, key volatility metrics suggest that fear of a further price collapse is diminishing. Despite the stock's decline, 3-month implied volatility fell by 1.95 percentage points to 74.12%. A decrease in implied volatility during a sell-off is unusual and can indicate that options sellers are becoming more comfortable with the current price level.

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This sentiment is reinforced by a collapse in the options skew, which measures the relative demand for puts versus calls. The data shows the skew narrowed significantly, suggesting that demand for downside protection (puts) is fading relative to the appetite for upside participation (calls).

Technical Picture Remains Bearish

The options market's optimism stands in stark contrast to the stock's technical posture. As of Tuesday, Nektar's stock chart generated a Strong Sell signal across all short-term timeframes, with indicators like the RSI (14) at 35.3 and the MACD showing bearish momentum.

The stock has fallen 12.2% over the past week and is currently testing a key weekly support level at $66.16. A break below this level could open a path toward the next support at $62.55. This bearish trend follows a sharp correction that has seen the stock fall 39% from its 52-week high of $109.