Options Bulls Bet on This Drug Stock to Double

NBRV calls have been preferred for some time now

The shares of Nabriva Therapeutics (NASDAQ:NBRV) are up 3.3% to trade at $2.85 today. Back in January, the company said the Food and Drug Administration (FDA) is expected to decide by tomorrow, April 30, on the approval of Contepo, a urinary tract infection antibiotic. Ahead of the anticipated decision, NBRV's typically quiet options pits have come to life.

More specifically, nearly 2,200 NBRV call options have changed hands today -- three times the expected intraday amount, and volume already at an annual high. Most active is the July 5 call, where it appears options buyers are betting on NBRV to practically double and top $5 in the next three months. The security hasn't traded that high in nearly a year.

Today's options trend is in tune with recent activity. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows speculative players have bought to open 1,410 calls in the last 10 sessions, compared to just one put.

On the charts, Nabriva stock has already more than doubled off its Dec. 26 bottom of $1.12. The shares have churned below $3.20 since March, but have found a cushion in their 40-day moving average.