Zoetis Jumps 4% on Texas Screwworm Case as Options Volume Swells 20-Fold
Updated
Updated · CNBC · Jun 4
Zoetis Jumps 4% on Texas Screwworm Case as Options Volume Swells 20-Fold
2 articles · Updated · CNBC · Jun 4
Summary
Zoetis rose nearly 4% and Elanco gained 2% after New World screwworm was found in Texas livestock, with traders quickly positioning for animal-health demand.
Zoetis drew almost 12,000 options contracts—nearly 20 times normal volume—with almost 11,000 calls traded after its screwworm treatment won conditional FDA approval last year and emergency-use backing last month.
One bullish trade spent nearly $700,000 on July $80 calls, effectively betting Zoetis can climb another 5% by mid-July as the outbreak risk stays in focus.
Scott Gottlieb said the parasite is already circulating in tens of thousands of animals across Mexico, warning the next 18 to 24 months are critical if cases cluster or spread to wildlife.
Cattle futures still rose more than 1%, extending a rally that has lifted prices 50% from late-2024 lows, though a wider outbreak could tighten beef supplies and unsettle fast-food demand.