Bausch Health Options Traders: Stock Will Remain Below This Level Through July Expiration

Bausch Health Companies Inc. (NYSE: BHC) shares rose sharply on Wednesday.

The Laval, Canada-based company announced the U.S. District Court of Delaware upheld the final judgment for XIFAXAN 550 milligrams that prevent U.S. Food and Drug Administration approval of Norwich's abbreviated new drug application until 2029.

On CNBC’s "Options Action," Kevin Kelly of Kelly Intelligence said there were around 2.3 times the amount of puts versus calls at the start of the day on Wednesday, which started to come down following the ruling.

Don’t forget to check out our premarket coverage here

There was a seller of 9,900 of the July 8-calls at an average price of 77 cents per contract, Kelly mentioned.

The trader expects Bausch Health’s stock to remain below the $9 level through July expiration.

Bausch Health Companies recently reported first-quarter revenues of $1.94 billion, up 1% Y/Y, up 4% organic basis, missing the consensus estimate of $1.97 billion.

Price Action: Bausch Health shares jumped 24.1% to close at $7.47 on Wednesday, and added 3% in today’s pre-market trading session.

Next: Fear & Greed Index Moves To 'Greed’ Zone After Dow Surges Over 400 Points