Novo Nordisk Stock Eyes Worst Day, Week on Record

Company Overview - Novo Nordisk A/S (NYSE:NVO) stock has declined by 18.9%, trading at $82.25, following the underperformance of its weight loss drug CagriSema in a late-stage study [2] - The stock is experiencing its largest daily and weekly percentage losses on record, marking a fourth consecutive loss [3] - Shares have reached a 52-week low of$82.11 and are currently down 20% for 2024, facing long-term overhead pressure from the 60-day moving average [3] Industry Context - The weight management pharmaceutical sector has seen significant activity, with Novo Nordisk's Ozempic and Eli Lilly's Zepbound gaining popularity, contributing to a competitive landscape [2] - The rise of telehealth companies like Hims & Hers Health (HIMS) has further intensified competition in the weight management market [2] Options Market Activity - Options trading has surged, with 2,830 calls and 1,353 puts exchanged, which is four times the typical volume for this time [4] - The December 375 call is the most active option, with new positions being opened ahead of today's close [4] Trading Sentiment - The 50-day put/call volume ratio for NVO stands at 1.14, indicating a higher level of bearish sentiment compared to 84% of readings from the past year [1]