2 Biotech Stocks Options Traders Are Watching

At least two biotech stocks are seeing increased scrutiny in the options pits, with BridgeBio Pharma Inc (NASDAQ:BBIO) and Esperion Therapeutics Inc (NASDAQ:ESPR) moving in opposite directions following their respective drug updates.

BridgeBio Stock Hits 12-Month High

Last seen up 61.3% to trade at $17.53 and earlier touching a more than one-year high of $19.39, BridgeBio stock is set to lock in its best-ever session, following positive results from the company’s dwarfism therapy. Specifically, BridgeBio’s infigratinib — a potential treatment for a form of dwarfism called achondroplasia — resulted in an increase of 3.03 centimeters per year.

Options traders seem to be excited about the news. In fact, 9,020 calls and 4,979 puts have crossed the tape so far today, which is 22 times the intraday average volume. The most popular contract is the March 20 call, followed by the 55 put in the same series, with new positions being opened at both.

Esperion Therapeutics Cholesterol Drug Fails to Impress

Esperion Therapeutics stock, meanwhile, is 21.1% lower to trade at $5.01 at last check, after data from a study of the company’s cholesterol-lowering drug, Nexletol, failed to wow investors. Digging deeper, questions arose about Nexletol’s ability to reduce the risk of heart attacks and other cardiovascular problems for individuals that can’t tolerate statins, as well as worries over the drug’s potential to increase sales.

The stock’s normally quiet options pits are popping with activity as well, with the 7,948 calls and 2,817 puts that have been traded so far today accounting for four times the amount typically seen at this point. The most popular contract by far is the March 5 put, while new positions are being opened at the 5 call from the same monthly series.

This article originally published on Yahoo Finance

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2 Biotech Stocks Options Traders Are Watching

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