NEW YORK (AVAFIN) -- Baxter International options contracts experienced a new 90-day record for call contracts where a total
of 9,920 call contracts were traded in the busy trading session. The contract spread
yielded a 1.57 put/call ratio where 0.6 call contracts were traded for each put contract.
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Put/Call ratio can be regarded as a predictor of investment sentiment, indicating what experienced
investors are doing in preparation for a move of an underlying equity. A high put/call ratio
suggests that the investor sentiment is bearish and that investors are expecting the underlying
stock price to decrease. On the other hand, a low put/call ratio implies that the investor
sentiment is bullish and that investors are expecting the underlying stock price to increase.
Thus, unusual volume provides reliable clues that the stock is expected to make a move.
Baxter lost almost half of its U.S. infusion pump market share because of a product recall, and regaining share from CareFusion and Hospira will be an uphill battle.
Additionaly, Biogen Idec and Novo Nordisk are taking aim at Baxter's Advate, and a less-frequent dosing schedule may be enough to convince physicians and patients to switch from Baxter's established brand.
Shares of Baxter International declined $0.65 (0.93%) to $69.41 in today's trading session.
The price of BAX ranged between $68.94 - $69.95. Volume is 3M in relation to the three
month average volume of 2M shares. BAX is trading above the 50 day
moving average and higher than the 200 day moving average. The stock's 52 week low is $48.98 and 52 week high is $70.53. To date, the stock has gained 1.11% within the last week.