Novavax Stock Pulls Back After Milestone Vaccine Success

Novavax Inc (NASDAQ: NVAX) experienced a 2.8% decline in its stock price, bringing it down to $9.18 this afternoon. The setback follows its previous surge to six-week highs. The equity is currently in the red for the quarter, although NVAX shares have still managed to grow 36% year-to-date. Positive trial results for a skin cancer vaccine jointly developed with Moderna (MRNA) initially boosted the stock, but options traders remain cautious, having placed 29,000 puts on NVAX – a rate 32 times higher than the average daily trading volume.

The most active contracts are the weekly January 21, 2028 10-strike put and the January 15, 2027 10-strike put.

In the short term, the put/call open interest ratio (SOIR) for NVAX stands at 0.13, which places it in the 10th percentile of its annual range. If the positive sentiment shifts, it could exacerbate the downward pressure on the shares. Short interest has been increasing, up 4.2% in the latest reporting period, now representing 29% of the stock's available float.

It would take short sellers over two weeks, at NVAX's average trading pace, to repurchase their bearish positions. Furthermore, options appear to be reasonably priced, as indicated by NVAX's Schaeffer's Volatility Index (SVI) of 80%, which falls within the 27th percentile of its annual range.