Novo Nordisk Stock Suffers After Weight Loss Drug Underperformance

Group 1 - Novo Nordisk A/S stock has decreased by 14.9% to $40.38 after a trial indicated that its weight loss drug CagriSema was less effective than Eli Lilly's tirzepatide [1] - The stock reached a four-year low of $39.97 and is on track for a fifth consecutive loss, marking its largest single-day percentage drop since July [1] - Over the past year, Novo Nordisk shares have declined by more than 54% [1] Group 2 - Options traders are showing a bullish sentiment, as indicated by a 50-day call/put volume ratio of 4.26, which is higher than 92% of readings from the past year [2] - Today's options activity includes 72,000 calls and 57,000 puts, which is five times the typical volume for this time [3] - The most popular options contracts are the weekly 3/6 40-strike put and May 35 call, with new positions being opened [3] Group 3 - Novo Nordisk has outperformed traders' volatility expectations over the past year, reflected in a Schaeffer's Volatility Scorecard (SVS) of 80 out of 100 [4] - The Schaeffer's Volatility Index (SVI) for Novo Nordisk is in the 23rd percentile of annual readings, suggesting that options are currently affordable [4]