LH Stock Bolstered by FDA's COVID-19 Test Kit Approval

LabCorp's at-home test was approved by the FDA fro emergency use

Laboratory Corp. of America Holdings (NYSE:LH) is higher this morning after the Food and Drug Administration (FDA) granted emergency use authorization to its COVID-19 at-home test kit. Healthcare workers are taking priority, while the company intends on making the kits available to the greater public in "coming weeks." In response, LH is up 2.7% to trade at $149.57.

The pop puts LH back north of its 40-day moving average -- a trendline the equity has only closed atop one other time since March 5, though pressure at the 50-day moving average now looms overhead. The $150 level, which coincides with the stock's post-bear gap highs, is also acting as a ceiling.

The majority of analysts covering LH are optimistic, with nine out of 12 rating it a "buy" or better. Plus, the consensus 12-month price target of $177.07 sits at a 21.6% premium to current levels.

On the other hand, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.70, sits higher than 98% of all other readings from the past year, suggesting short-term option players have rarely been more put-biased in the past 12 months.