Summary of Novo Nordisk Results and Options Strategy
Author: Koen Hoorelbeke, Investment and Options Strategist
Date: November 2, 2026
Overview
Novo Nordisk is set to release its nine-month results on November 4, 2026. Investors should note that while many hold shares in Copenhagen, the options are traded as American Depositary Receipts (ADRs) in New York under the ticker NVO. This distinction is crucial for understanding the implications of trading options around the results announcement.
Key Differences Between Share Lines
The NVO ADR represents one Novo Nordisk B share but trades in US dollars on the New York Stock Exchange, while the B shares trade in Danish kroner on Nasdaq Copenhagen. This creates three main effects:
- The dollar-krone exchange rate impacts the share price.
- The results announcement occurs before the New York market opens, affecting trading dynamics.
- A covered call written on Copenhagen shares is not adequately covered by the ADRs, leading to potential risks.
Market Expectations
Market sentiment indicates an expected share price movement of approximately 8.5% in either direction by the expiry of options on November 20, 2026. Historical data shows that on most results days, the ADR moved less than 6%, with notable exceptions.
Options Strategies
Cash-Secured Put Example
Investors can sell a cash-secured put to agree to buy 100 ADRs at a lower price if the stock falls below the strike price at expiry. For instance:
- Strike Price: $35
- Premium Received: $0.42
- Break-even Price: $34.58
- Maximum Risk: $3,458 if the ADR falls to zero.
Covered Call Example
For those holding ADRs, selling a covered call allows them to agree to sell their shares at a predetermined price. For example:
- Strike Price: $42
- Premium Received: $0.47
- Break-even Price: $37.82
- Maximum Risk: $3,782 if the ADR falls to zero.
Risks and Considerations
Both strategies carry risks, particularly in the event of significant price movements. Investors should be aware that neither strategy protects against large declines in share price. Additionally, options are American-style, meaning they can be assigned at any time before expiry.
Conclusion
For investors holding Novo Nordisk shares in Copenhagen, understanding the implications of trading options on the ADR is essential. The differences in currency, trading hours, and coverage can significantly affect trading strategies around earnings announcements.
Note: The examples provided are for educational purposes only and should not be considered as trading recommendations.