Story
Novavax Options Volume Surges, Dominated by Bearish Put Contracts
Summary
Trading activity in Novavax options reached its highest level in months on Friday, with put options significantly outnumbering calls, signaling potential bearish sentiment as the company's shares declined.
Options trading volume for Novavax Inc. (NVAX) surged to its highest level in months on Friday, driven by a significant spike in bearish bets. The heightened activity coincided with a decline in the biotechnology company's stock price.
Spike in Trading Activity
By midday in New York, total options volume for Novavax reached 13,629 contracts, according to exchange data. The trading was heavily skewed towards puts, which are typically used to bet on a price decline or to hedge long positions.
- Put Options: Volume totaled 12,111 contracts.
- Call Options: Volume reached 1,518 contracts, the highest level recorded since April 18, 2024.
Focus on Bearish Bets
AdThe vast majority of the day's activity was concentrated in two specific put contracts with a strike price of $8. One contract, the July 31, 2026 $8 put, saw 5,708 contracts traded against a pre-existing open interest of just 91, indicating a large number of new bearish positions were opened.
A second contract, the July 17, 2026 $8 put, recorded 5,675 contracts traded. The overwhelming volume in puts relative to calls suggests a strong bearish sentiment among options traders regarding the stock's near-term to long-term outlook.
Market Context
The spike in options activity occurred as Novavax shares traded lower. The company's stock price fell 2.5% to $9.16 during Friday's session. The concentration of put activity below the current share price suggests traders are positioning for a potential drop below the $8 mark in the coming years.