Schaeffers Investment Research·2025-10-09 14:11Core Insights - Novo Nordisk has agreed to acquire Akero Therapeutics for up to $5.2 billion in cash, leading to a 1% decline in Novo Nordisk's stock price to $59, while Akero's stock rose by 16.8% to $54.29 following the announcement [1] - Year-to-date, Novo Nordisk's stock has decreased by 31%, struggling to recover from a significant drop of nearly 22% after its earnings report in late July, while Akero has outperformed with a 95% increase year-to-date [2] - The options market shows a bullish sentiment for Novo Nordisk, with a high put/call volume ratio indicating potential headwinds if this sentiment unwinds [3] - Both companies exhibit low volatility expectations in the options market, with Schaeffer's Volatility Index indicating relatively low pricing for options [4] Company Performance - Novo Nordisk's stock is currently facing pressure, trading at $59, down 31% year-to-date, and has not recovered from a significant post-earnings drop [2] - Akero Therapeutics has seen a strong performance, with a 95% increase year-to-date and a notable rise in stock price following the acquisition announcement [2] Market Sentiment - The options market for Novo Nordisk has been notably bullish, with a put/call volume ratio of 3.96, placing it in the 90th percentile of annual readings, suggesting potential for increased volatility if sentiment shifts [3] - The Schaeffer's Volatility Index for both Novo Nordisk and Akero indicates low volatility expectations, with values of 54% and 61%, respectively, suggesting a calm market outlook for options trading [4]