Investing with options: Novo Nordisk earnings Investing with options: Novo Nordisk earnings Investing with options: Novo Nordisk earnings

Investing with options: Novo Nordisk earnings

Options 10 minutes to read
Koen Hoorelbeke

Options Strategist

Summary:  As Novo Nordisk prepares to release its Q3 earnings report, a focus on its game-changing obesity care treatments has propelled the stock into the limelight. With a forecasted 27% YoY revenue growth and EBITDA of DKK 27bn, the stakes are high. This article explores four curated options strategies to fit bullish, bearish, and neutral stances on Novo Nordisk.

Investing with options - Novo Nordisk earnings

With the global community eagerly awaiting Novo Nordisk’s Q3 financial results this Thursday, the company’s impressive progress in the field of obesity care is drawing significant attention. The market has responded with a surge in demand, making Novo Nordisk a leader in this burgeoning field. This article will delve into four options strategies designed to align with various market outlooks on Novo Nordisk's stock, which last traded at $96.40.

See also: Earnings watch Caterpillar Apple Novo Nordisk
Important note: the strategies and examples provided in this article are purely for educational purposes. They are intended to assist in shaping your thought process and should not be replicated or implemented without careful consideration. Every investor or trader must conduct their own due diligence and take into account their unique financial situation, risk tolerance, and investment objectives before making any decisions. Remember, investing in the stock market carries risk, and it's crucial to make informed decisions.


1. Bullish outlook - buying call options:

Considering Novo Nordisk's pullback in the last few days, a long call option can capitalize on potential upside.

  • Execution: BuyToOpen 1 21-Jun-2024 87.50 Call @ $16.90 (Delta: 0.7376)
  • Premium and risk: Per share: $16.90 (debit)
    • Premium cost: $16.90 x 100 = $1,690
    • Max risk: $1,690 (if NVO remains below 87.50 at expiry)
  • Breakeven point: $87.50 (strike) + $16.90 (premium) = $104.40
  • Rationale: Opting for a long call with a distant expiration reduces time decay and captures more upside with a high delta.
  • Stock vs options comparison: $1,690 could buy approximately 17 shares of NVO at its current price of $96.40. A $1 increase yields an estimated profit of $17 for the stock but a $73.76 gain for the option (100 x $1 x 0.7376).

2. Bullish outlook - selling ITM put options:

Selling in-the-money (ITM) put options can be another method to acquire Novo Nordisk shares at a discount.
  • Execution: SellToOpen 1 03-Nov-2023 100 Put @ $4.50 (Delta: -0.6474)
  • Premium and risk: Per share: $4.50 (credit)
    • Premium earned: $4.50 x 100 = $450
    • Max risk: Considerable if NVO falls sharply.
  • Breakeven point: $100 (strike) - $4.50 (premium) = $95.50
  • Rationale: A near-term expiration date accelerates time decay, making the trade more profitable if NVO remains above the strike price.
  • Stock vs options comparison: Effective price: $95.50 vs current price: $96.40. Discount: $0.90 per share. Percentage Discount: 0.93%.

3. Bearish outlook - buying put options:

If you believe Novo Nordisk's stock is set for a decline, a long put option can be suitable.
  • Execution: BuyToOpen 1 21-Jun-2024 105 Put @ $13.80 (Delta: -0.5353)
  • Premium and risk: Per share: $13.80 (debit)
    • Premium cost: $13.80 x 100 = $1,380
    • Max risk: $1,380 (if NVO stays above 105 at expiry)
  • Breakeven point: $105 (strike) - $13.80 (premium) = $91.20
  • Rationale: This long-put strategy minimizes time decay while providing a leveraged position for significant gains if the stock price falls.
  • Stock vs options comparison: A $1 decrease in NVO stock yields an estimated $53.53 profit per option contract (100 x $1 x -0.5353).

4. Neutral/bullish outlook - writing covered calls:

If you already own Novo Nordisk shares, covered calls can generate additional income.
  • Execution: SellToOpen 1 10-Nov-2023 105 Call @ $0.55 (Delta: 0.1786)
  • Premium and risk: Per share: $0.55 (credit)
    • Premium earned: $0.55 x 100 = $55
    • Max risk: Capped at the stock's current market price of $96.40 x 100 = $9,640.
  • Breakeven point: Varies based on stock cost basis
  • Yield:
    • 11-Day Yield: ($55 / $9,640) x 100 = 0.57%
    • Annualized Yield: (0.57% x 365) / 11 = 19.05%
  • Rationale: Writing a covered call provides additional income while capping the upside potential.
  • Stock vs options comparison: The covered call secures immediate premium income with a capped upside potential, providing a 19.05% annualized yield if repeated.


When it comes to investing in options around Novo Nordisk's earnings, each strategy comes with its unique set of rewards and risks. The key is aligning your strategy with your market outlook and risk tolerance.
The comparisons between buying stock and using options reveal interesting facets:
  • Buying calls: The leverage effect of a call option allows you to control the same amount of stock with less capital. A $1 increase in Novo Nordisk's stock results in an $73.766 gain with a call, compared to a $17 gain by holding 17 shares of the stock for the same amount of capital.
  • Selling ITM puts: This strategy could allow you to acquire Novo Nordisk at a discounted rate compared to buying shares directly. The effective purchase price would be the strike minus the premium received, which can be calculated as a percentage discount against the current stock price.
  • Buying puts: Options offer a leveraged way to bet against the stock with a defined risk, which can be particularly useful in volatile times.
  • Writing covered calls: This strategy provides additional income and an annualized yield of 19.05%, which you can't get by just holding the stock.
Each option strategy can serve a purpose depending on your viewpoint on the stock and market conditions, making options a flexible tool for various investment goals.

Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.