Chances OPKO Health Inc. (NASDAQ:OPK) could heat up?

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Shares of Opko Health, Inc. (NASDAQ:OPK) are currently poised at 0.51% from the open today and are trading at $7.83. More than 1,890,448 shares have exchanged hands compared to an average trading volume of 4.28M. At the current pps, the market cap stands at $4.31B. The stock prices of Opko Health, Inc. (NASDAQ:OPK) are currently trading at -35.56% below its 52 week high and 10.13% above its 52 week low.

Investors in OPKO Health Inc saw new options begin trading this week, for the December 15th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 234 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the OPK options chain for the new December 15th contracts and identified one put and one call contract of particular interest.

Opko Health, Inc. (NASDAQ:OPK) is all set to announce its earnings on May 31/a. As per Zack’s analyst ratings, Opko Health, Inc. (NASDAQ:OPK) currently has an average brokerage rating of 1.4. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:OPK) is $12.875 with a high of $19.5 and a low of $8.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 32% Sell with a Weakest short term outlook on maintaining the current direction. Longer term, the trend strength is Average. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). Currently, the 5 day EMA 7.74 is lower than the last trade price suggesting a short term bullish pattern building up. Long term, the 50 day EMA 8.00 is higher than current trading price depicting a bearish pattern.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 52.33 suggesting a bullish price action.

As such, while we believe Opko Health, Inc. (NASDAQ:OPK) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

OPKO Health is a multinational biopharmaceutical and diagnostics company that seeks to establish industry-leading positions in large, rapidly growing markets by leveraging its discovery, development and commercialization expertise and novel and proprietary technologies.

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