Buy Call NVO

August 7, 2024
Sell Existing Position: Sell your NVO September 135 Calls for $1 or more.

NVO released earnings this morning before the open and the market does not like them, as the shares are trading lower by 6%.

And while there is a chance that NVO will bounce back some in the days/weeks to come, there is also as good of a chance that the stock will chop around, or even trade lower. For that reason, we are going to take our loss on the balance of this trade and prepare to move the capital into fresher ideas.

To execute this trade you need to:

Sell to Close your NVO September 135 Calls.

Stepping back to the original buy and how this trade played out … I really liked this position when we added NVO to the portfolio, and it made several attempts to break out. However, in recent weeks NVO and its peer LLY have fallen out of favor, and for that reason we are going to sell the balance of this trade for a loss.

June 25, 2024

Sell a Third of Existing Position: Sell a Third of your NVO September 135 Calls for $16 or more.

NVO is breaking out to a new high today. And while I think the stock looks terrific, in this topsy-turvy market let’s continue to hit and run and take profits of approximately 20% on the first third of our trade when these opportunities present themselves.

To execute this trade you need to:

Sell to Close a Third of your NVO September 135 Calls

As is always the case when we sell a partial piece of our position, we hope this sale is a mistake and the stock and our calls trade higher in the days/weeks to come.

May 1, 2024

Novo Nordisk (NVO) Earnings

Ahead of the “big” Federal Reserve event this afternoon I wanted to highlight what the options market is pricing in for Novo Nordisk (NVO) earnings tomorrow morning.

Headed into the event, we are holding our full NVO call position. And while our trade has not worked yet, I am encouraged by the stock’s resilience in recent weeks even as the market has come under pressure. For that reason, and because option activity has been strong, as well as the positive reaction to peer Eli Lilly’s (LLY) earnings report earlier this week, I am going to hold my NVO position through the announcement.

That being said, there is risk in holding a call position through earnings, and should the stock fall, our calls will come under a ton of pressure. And if that risk is too great for you, you must Sell to Close a piece, or your entire position, today before the market close.

NVO - With the stock trading at 129, the options market is pricing in a move of $7 this week, or 122 to the downside and 136 to the upside.
Open interest is skewed bullish on a ratio of 1.5:1 call vs. put.
Skew is pricing in typical downside fear and upside interest.

March 12, 2024
Buy the Novo Nordisk (NVO) September 135 Calls (exp. 9/20) for $14.50 or less

Today we are going to freshen up the portfolio a bit by buying one of the best-looking stocks in the market while selling our two worst-performing holdings.

Let’s start with NVO which has been riding the “miracle” weight-loss trade the past year, and continues to see very strong call buying including these trades recently:

Today - Buyer of 1,500 Novo Nordisk (NVO) June 140 Calls for $8 – Stock at 134

Thursday - Buyer of 4,500 Novo Nordisk (NVO) April 140 Calls for $4.50 – Stock at 137

While we may not be “early” to the NVO stock move, I think the stock looks terrific, and option activity remains strong, so let’s add the stock to the portfolio today.

To execute this trade you need to:

Buy to Open the NVO September 135 Calls

The most you can lose on this trade is the premium paid, or $1,450 per call purchased.