Zoetis Inc (ZTS) develops and commercializes animal health medicines for animals. The stock is currently trading around $32.65 in a 52 week range of $28.81-$35.42. The stock has rallied over 5% year to date but is still underperforming the broader market. Options action in ZTS is suggesting that the stock could head higher through April of next year. In today’s trading session a trader bought 1,400 ZTS Apr 35 calls for $1.25. This trade will make the Apr 35 call line the largest open interest in April. This is a bullish trade that suggests this trader believes the stock will be above $25.00 on April expiration. The stock is also trading in bullish territory technically. Shares of ZTS are trading above the Ichimoku Cloud indicating there could be more upside in ZTS. We believe that this technical strength and the unusual options activity provide a great set up for a swing trade in ZTS
Trade: Buying ZTS Stock at $32.65 with a stop at $30.21.
Risk: $2.44 per share
Target #1: $33.87
Target #2: $35.09
Target: #3: $37.53