Here is Why $NVAX Surged 50% & Closed 27.79% after Neutural Earnings

The Maryland-based company biotech firm $Novavax(NVAX)$ Latest Earnings Results reported a Q1 net loss of $293.9 million and the company would slash its global workforce by about 25%.

Seems investors are wondering how will they going to do $1.5 billion in covid vaccine sales in 2023 after doing only $81 million in Q1.

Hopefully its staff cuts will contribute toward its goal of reducing its annual expenditure by around 40% to 50% by 2024, according to the press release.

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However, the outlook of$Novavax(NVAX)$ is Neutural, good news shows the company has positive Phase 2 Topline results show on COVID-Influenza combination, stand-alone influenza and high-dose COVID vaccine candidates demonstrate robust immune responses.

After 35 years of business, Novavax’s Covid antidote remains its only commercially available product.

$Novavax(NVAX)$ soared 27.79% on Tuesday .

Option feld see much more trading enthusiasms, see from the news @Option_Movers There were 116.2K $Novavax(NVAX)$ option contracts traded on Tuesday, surging over 270% from the previous day. Call options account for 61% of overall option trades. Particularly high volume was seen for the $10 strike call option expiring May 12, with 7,874 contracts trading.with 50,343 contracts trading.

Unusual Options Activity​​, Source: Market Chameleon

Regarding to $Novavax(NVAX)$’s option strategies, the public info shares If NVAX stock price at expiration is at or above $11.00, a spread strategy has a 42% upside potential.

Option Profit Calculator for NVAX Call Spread at 12-May-23 Expiration

The optimal stock price for this option strategy is to close at or above $11.00 on the expiration date, May 12, 2023. In that scenario, both calls would be in-the-money, so the spread would be worth the maximum value of 3.00. That would equate to the potential upside of +37% for this call spread with 3 days left to expiration.

The maximum gain will be realized if the stock price is at or above 11.00. The maximum gain is $0.81

The breakeven point is at 10.19, which is 7.7% below the current spot price.

The maximum loss will occur when the stock price is at or below 8. The max loss is $2.19.

I’m learning about trading options……