Getting paid to buy Novo Nordisk: earn income while waiting for a better price

After a spectacular run-up through 2023 and early 2024, Novo Nordisk shares have cooled down. The stock, once the poster child of the GLP-1 obesity drug boom, now trades around USD 69—down sharply from its highs near USD 135. A recent combination of supply bottlenecks, executive changes, and a slightly more cautious outlook has added volatility to the share price. But for long-term investors who still believe in Novo’s story, that volatility opens a door.

What if you could get paid while waiting to buy the shares at a discount?

That’s exactly what a cash-secured put strategy offers.

A look at Novo’s journey—and the current pull-back

Over the last five years, Novo Nordisk has delivered stellar returns, fueled by global demand for its diabetes and weight-loss medications, particularly Ozempic and Wegovy. But every great growth story experiences pauses. As you can see in the chart below, the recent correction has brought the stock back to levels last seen in late 2023.

We’re using the U.S.-listed ADR version of Novo Nordisk (ticker: NVO) because options are not available on the Denmark-listed shares.

This retracement doesn’t necessarily mean the story is over—it may simply mean the valuation got ahead of itself. And if you’re a long-term investor who believes in the future of GLP-1 treatments, the current price may feel like an opportunity.

But instead of buying shares outright at  USD 69, there’s a more strategic approach.

Important note: The strategies and examples described are purely for educational purposes. They assist in shaping your thought process and should not be replicated or implemented without careful consideration. Every investor must conduct their own due diligence, considering their financial situation, risk tolerance, and investment objectives before making decisions. Remember, investing in the stock market carries risks, so make informed decisions.

What’s a cash-secured put, in plain English?

Imagine you’re willing to buy 100 Novo shares—but only if the price drops a little more, say to USD 64. Now imagine someone pays you  USD 170 today for that possibility. That’s a cash-secured put: you’re selling someone else the right to sell you shares at a set price, and in return, you’re paid a premium upfront.

To do this safely, you set aside the full amount needed to buy the shares (USD 6 400 in this case), so you’re covered if it happens. It’s called “cash-secured” because your obligation is fully backed by cash.

This strategy is particularly suitable for conservative investors. You either:

• Earn income if the shares stay above your target price, or
• Buy the stock you already wanted, but at a discount.

Let’s look at a real example.

The trade: selling the USD 64 put expiring August 8, 2025

As of today, with Novo Nordisk trading near USD 69, the August 8 put option with a USD 64 strike is trading around USD 1.70 per share. That means you can collect USD 170 in premium (since each contract represents 100 shares) for agreeing to buy the stock at USD 64 if it drops.

To execute this, you'd sell one put contract and set aside USD 6 400 in cash. That’s the maximum you’d need to buy the shares if assigned.

Now here’s the part that many investors love: if the share price stays above USD 64 through August 8, the put expires worthless—and you keep the USD 170 premium. On a cash commitment of USD 6 400, that’s a 2.7% return in just 32 days.

On an annualised basis, that works out to roughly 29%, assuming you could repeat this kind of trade every month (which, of course, isn’t guaranteed).

This “get paid to wait” yield is the real power of cash-secured puts—especially when premiums are elevated, as they are now due to increased short-term volatility in the stock.

What can happen at expiration?

There are two possible outcomes—both acceptable, depending on your investment goals.

Scenario 1: Novo stays above USD 64 Your put expires worthless. You keep the $170 premium as pure income. Your €6 400 in cash was never used to buy shares, and you can now consider repeating the strategy for another month.

Scenario 2: Novo falls below USD 64 You’re assigned 100 shares at USD 64, which you already agreed to. But thanks to the USD 1.70 premium you received, your effective purchase price is USD 62.30—a further 10% discount from where the stock was trading just a few weeks ago. From here, you could simply hold the shares or start generating income with a covered call.

Risks to keep in mind

No investment strategy is without risk—even one that sounds this conservative.

The biggest risk here is that Novo drops well below USD 64 before expiration. If the stock falls to USD 55, for instance, you’d still be obligated to buy it at USD 64, meaning you'd have a paper loss on your new position. However, because you were paid USD 1.70 upfront, your break-even point is actually USD 62.30.

Another factor to be aware of: Novo Nordisk trades as an ADR on the NYSE (ticker: NVO), but its home listing is in Denmark. That means movements in the Danish krone (DKK) versus the US dollar can also influence the price. And like all pharma stocks, headlines about clinical trials, competition (such as Eli Lilly’s Zepbound), or regulatory changes can move the share price quickly.

Final thoughts

If you're a long-term investor looking to add Novo Nordisk to your portfolio, selling a cash-secured put at $64 offers a compelling way to do so—either collecting a ~2.7% yield in one month or buying the stock nearly 10% below the current price.

It’s a calm, measured approach in a market that’s been anything but.

Just remember: while cash-secured puts are straightforward, they still require a clear plan. Know how much capital you’re willing to commit, stick to high-quality names you’re happy to own, and never forget that your real return depends on both outcome and discipline.

Market Quick Take – 4 July 2025

Q3-2025 Macro Outlook: Less chaos, and hopefully a bit more clarity

Market drivers and catalysts

• Equities: US/Europe up; strong jobs; tech/semis lead; UK rebounds
• Volatility: VIX at 4-month low; calm but event risk ahead
• Digital assets: Bitcoin stable; IBIT steady inflow; ETHA up; mining splits
• Fixed Income: US short-end yields rise on reduced rate cut hopes
• Currencies: Dollar heading for a small weekly loss
• Commodities: Gold recovers from NFP drop, crude focus on OPEC+ meeting
• Macro events: Germany June Construction PMI, US markets closed for Independence Day holiday

Macro data and headlines

• US NonFarm Payrolls increased by 147,000 in June, surpassing the forecast of 111,000, as state and healthcare job gains offset federal cuts. The unemployment rate decreased to 4.1%, and wage growth slowed to 0.2%, alleviating inflation worries. Despite solid headline figures, the report masked weakness in private payrolls and other potential warning signs of deterioration in the labour market, but still a report that all but removed hopes for a July rate cut.
• Trump's tax-cut legislation passed its final hurdle in Congress on Thursday, with the Republican-controlled House narrowly approving a large package to fund his domestic agenda, potentially leaving millions of Americans without health insurance.
• ISM Services PMI increased to 50.8 in June 2025 from 49.9 in May, slightly exceeding the forecast of 50.5. This indicates a rise in economic activity in the services sector after a month of contraction, despite firms frequently citing slow growth and economic uncertainty.
• The US trade gap expanded to $71.5 billion in May 2025 from $60.3 billion in April. Exports dropped 4% to $279 billion from April's record $290.5 billion, with significant declines in nonmonetary gold, natural gas, and finished metal shapes.
• Prime Minister Keir Starmer and Chancellor Rachel Reeves reassured markets by pledging fiscal discipline and economic stability, which lifted gilts and the pound, enhancing confidence in UK assets.

Macro calendar highlights (times in GMT)

0730 – Germany June Construction PMI 0830 – UK June Construction PMI

US markets closed for Independence Day holiday

Earnings events

Next week: The Progressive Corporation, Fast Retailing, Cintas Corporation, Kongsberg, Delta Airlines

For all macro, earnings, and dividend events check Saxo’s calendar.

Q3-2025 Investor Outlook: Beyond American shores – why diversification is your strongest ally

Equities

• US: US stocks closed higher in a holiday-shortened session, with the S&P 500 and Nasdaq both reaching fresh record highs. The S&P 500 ended at 6,279.35 (+0.83%), boosted by strong June jobs data (nonfarm payrolls +147K vs. 106K expected, unemployment fell to 4.1%). Nvidia gained 1.3%, bringing its market cap near $4 trillion, while Synopsys rose 4.2% on AI optimism and relaxed US export rules to China. Datadog surged on S&P 500 inclusion news. All sectors except communication services rose. Markets are closed Friday for Independence Day.
• Europe: European shares edged higher, with the STOXX 600 +0.4%, DAX +0.61%, and CAC 40 +0.21%. Gains were led by semiconductor stocks after the US eased chip design export restrictions to China; Infineon, NXP, and Siemens outperformed. UK markets rebounded as PM Starmer reaffirmed support for Chancellor Reeves. Services PMIs pointed to improving business activity. Ryanair shares dipped on strike-related flight cancellations. Novartis fell after a key trial disappointment.
• UK: The FTSE 100 rebounded 0.55%, helped by strong business activity data (Composite PMI 52) and reassurances over fiscal discipline from government leaders. Banks and consumer stocks like Lloyds and Currys led gains, while AstraZeneca slipped after M&A headlines. Market confidence improved as political tensions eased and borrowing concerns were addressed.
• Asia: Asia markets were mixed. Hong Kong's Hang Seng lost 0.83% as trade war jitters and weak local data weighed, while China A-shares edged higher (+0.4%) on hopes for easing US-China tensions after export curbs were relaxed. Japan and Australia ended flat, and South Korea’s KOSPI dropped 1.92% on tariff worries. Investors are watching for Trump’s new tariff announcements and further Chinese stimulus.

Volatility

Volatility continued to drift lower ahead of the US holiday. The VIX closed at 16.38—its lowest in four months—reflecting calm despite macro risks. Short-term VIX futures remain elevated, hinting at caution around next week’s tariff and inflation data. For long-term investors, low volatility means cheaper hedges, but light holiday trading can amplify any surprises.

Digital Assets

Crypto markets consolidated after recent gains. Bitcoin steadied near $109,000, while Ethereum traded around $2,557. The IBIT ETF held firm at $62.19, drawing steady inflows, while ETHA recovered to $19.49. Mining stocks diverged: CleanSpark rallied as it increased BTC output, while Riot and MARA saw production declines due to power curtailments. Regulatory focus intensified as a new US Senate bill proposed major crypto tax changes and Ripple applied for a US banking license.

Fixed Income

Treasuries fell after a stronger-than-expected payrolls report, with 2-year note yields rising 10 basis points to 3.88%. Losses were mainly at the front-end, leading to a small bear flattening the yield curve as traders priced out the chance of a July Fed rate cut. US 10-year Notes ended to shortened trading week 8 basis point higher at 4.35% with earlier gains were undone, when Treasuries had rallied following Chancellor Rachel Reeves' reaffirmation of fiscal discipline.

Commodities

• The Bloomberg Commodity Index ended a US holiday-shortened week with a small 0.6% gain (7% YTD), with grains and precious metal market strength offsetting continued weakness in softs, while an 8.5% natural gas slump offset gains across crude and fuel markets.
• Oil prices trade softer, but Brent is currently confined to a relatively tight range. In a holiday thinned market traders will be focusing on global trade tensions and the 6 July OPEC+ meeting that may yield another 411k b/d increase in crude oil production, potentially increasing a forecasted surplus.
• Gold was set for a weekly gain of around 2%, having recovered from two recent selling attempts, the latest being Thursday's drop following the US jobs report, which lowered the prospect of an imminent US rate cut. Instead, the attention turned to trade after Trump said some US trading partners would face tariffs from 1 August.

Currencies

• USD strengthened following unexpectedly strong US jobs data, in a sign traders see less pressure on the Federal Reserve to cut interest rates. The DXY touched a 97.40 high only to drift lower after the House passed President Trump's significant tax cut and spending bill, and after he ratcheted up trade tensions again ahead of next week's deadline for higher tariffs.
• EUR weakened to 1.1720 on Thursday due to the dollar's strength only to recover most of its USD NFP-driven loss, trading this am around 1.1785. Traders also focused on mixed Services PMI data, while the latest ECB Minutes highlighted concerns that maintaining current interest rates might risk missing the inflation target in 2026 and 2027.
• GBP traded stable to higher as UK Prime Minister Starmer worked to bolster confidence in Chancellor Reeves. Yet it remains just one of two currencies, the other being the SEK, that trades down on the week against the Greenback.
• JPY initially weakened to 145.25 following the US jobs report before strengthening to around 144.35 overnight on renewed trade tariff tensions.

For a global look at markets – go to Inspiration.