Decoding Biogen's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Biogen BIIB.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don’t know. But when something this big happens with BIIB, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga‘s options scanner spotted 32 uncommon options trades for Biogen.

This isn’t normal.

The overall sentiment of these big-money traders is split between 37% bullish and 31%, bearish.

Out of all of the special options we uncovered, 25 are puts, for a total amount of $1,440,538, and 7 are calls, for a total amount of $248,991.

What’s The Price Target?

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $110.0 and $165.0 for Biogen, spanning the last three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Biogen’s options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Biogen’s significant trades, within a strike price range of $110.0 to $165.0, over the past month.

Biogen Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About Biogen

Biogen and Idec merged in 2003, combining forces to market Biogen’s multiple sclerosis drug Avonex and Idec’s cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva (oncology) and Ocrevus (multiple sclerosis) are marketed via a collaboration with Roche. Biogen markets several multiple sclerosis drugs including Plegridy, Tysabri, Tecfidera, and Vumerity. Biogen’s newer products include Spinraza (SMA, with partner Ionis), Leqembi (Alzheimers, with partner Eisai), Skyclarys (Friedreich’s Ataxia, Reata), Zurzuvae (postpartum depression, Sage), and Qalsody (ALS, Ionis). Biogen has several drug candidates in phase 3 trials in neurology, immunology, and rare diseases.

In light of the recent options history for Biogen, it’s now appropriate to focus on the company itself. We aim to explore its current performance.

Where Is Biogen Standing Right Now?

• Trading volume stands at 1,501,013, with BIIB’s price up by 0.01%, positioned at $150.39.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 44 days.

Expert Opinions on Biogen

In the last month, 5 experts released ratings on this stock with an average target price of $199.2.

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* An analyst from RBC Capital has decided to maintain their Outperform rating on Biogen, which currently sits at a price target of $225.
* An analyst from Goldman Sachs has decided to maintain their Buy rating on Biogen, which currently sits at a price target of $245.
* An analyst from Citigroup has decided to maintain their Neutral rating on Biogen, which currently sits at a price target of $145.
* An analyst from Wells Fargo persists with their Equal-Weight rating on Biogen, maintaining a target price of $140.
* Consistent in their evaluation, an analyst from HC Wainwright & Co. keeps a Buy rating on Biogen with a target price of $241.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Biogen, Benzinga Pro gives you real-time options trades alerts.