Teva Soars 6.76% as Options Surge Amid Pharma Sector Turbulence Trading Volume Ranks 224th

Teva Pharmaceutical (TEVA) surged 6.76% on Aug. 21, with a trading volume of $0.37 billion, a 144.69% increase from the previous day and ranking 224th in market activity. The stock reached an intraday high of $18.69 amid heightened options trading and sector-wide volatility. Options contracts like the 18.5C and 19C saw price jumps of 430% and 480%, signaling aggressive short-term positioning.

The rally occurred against a backdrop of pharmaceutical sector turbulence. Sarepta Therapeutics’ $700 million debt extension and Trump’s 15% EU pharma tariff announcement created uncertainty. However, TEVA outperformed peers, with its technical setup attracting investor attention. The stock traded above its 200-day moving average (17.20) and tested Bollinger upper bands, supported by a 1.13% turnover rate. Institutional capital appears to be hedging against continued momentum through high-gamma options, leveraging gamma ratios of 0.3637 and 0.3650 for the 18.5C and 19C contracts respectively.

Key resistance levels include the 18.50 price threshold, where a breakout could trigger further gains. The 19C options, with 64.40% leverage, offer aggressive exposure if the rally extends. Meanwhile, the RSI at 82.73 suggests overbought conditions, while the MACD (0.324) and histogram (0.192) indicate intact momentum. Support is found near 16.50–16.56 (30-day) and 16.40–16.60 (200-day) levels.

Backtesting a strategy based on TEVA’s 6% intraday surge showed a 72.20% return from 2022 to 2025, compared to a 81.15% benchmark. The strategy’s CAGR was 11.77% with a maximum drawdown of 0.00%, reflecting high volatility (40.37%) and a Sharpe ratio of 0.29. This highlights the stock’s sensitivity to market movements and potential for both rapid gains and risks.