Novo Nordisk’s stock has jumped over 45% in the last month. This rise is driven by positive sales predictions and the UK approving a higher dose of its Wegovy product. With such rapid changes, it’s important to consider how the stock behaves around certain resistance levels. There are two key resistance levels to watch. The first is near $69, corresponding to a gap that happened on July 29 last year. This level may be where the stock price halts or stabilizes. The second level is around $74, associated with another gap from June 20 last year, indicating another potential area of resistance. Novo Nordisk, known for its pharmaceuticals, is gaining attention due to Wegovy’s success, which has impacted its recent stock performance. The company also pays a quarterly dividend expected to reach $1.73 per share by 2026, marking a more than 19% increase from the August dividend. Even with the positive momentum, it’s vital to practice disciplined risk management. The focus should remain on technical factors, rather than what’s happening in the news. Remember the strong 45% gain in Novo Nordisk during 2025? That surge was fueled by early excitement regarding its product pipeline. Now, with the stock around $92.50, the technical landscape has shifted. We need to manage positions at these new highs. The key resistance levels at $69 and $74 from last year have been broken, and they may act as support if there’s a significant pullback. This current strength is backed by solid financials. Novo Nordisk reported a 38% increase in revenue year-over-year for the fourth quarter of 2025. This growth stems from its GLP-1 drugs, and the supply issues faced last year have mostly been resolved. This gives us greater confidence in the trend’s sustainability. For those trading options, the high price makes selling premium appealing. We might sell cash-secured puts with strike prices near the $85 support level to earn income or buy stock at a better price. This strategy takes advantage of steady implied volatility following the recent earnings report. For those who already own the stock, writing covered calls with a strike price close to the psychological $100 level for February could be a smart move. This allows you to benefit from any further increases while also generating income. Given the stock’s rise, this strategy can provide a small hedge against a possible dip. We also need to consider the competitive landscape. Recent industry data shows that Eli Lilly’s Zepbound has taken nearly 40% of the new prescription market for anti-obesity drugs. This fierce competition could lead to price fluctuations, making strategies like long-dated straddles appealing for those expecting significant movements but unsure of the direction. This battle for market share will be crucial to monitor in the first half of 2026. Lastly, the company’s strong cash flow supports the upcoming dividend, which is set to rise to $1.73 per share this year. This financial stability adds a layer of safety when selling options premium. We view this dividend as a key factor that will support investor interest in the months ahead.

here to set up a live account on VT Markets now