Schaeffer's Trading Floor Blog

Biggest Movers: CBS Corporation, Marathon Petroleum Corp, and Bristol-Myers Squibb Co

CBS, MPC, and BMY are making big moves in Wednesday's trading

by 6/25/2014 2:17 PM
Stocks quoted in this article:

Heading into the final hours of today's session, three of the top market movers are mass media company CBS Corporation (NYSE:CBS), oil refiner Marathon Petroleum Corp (NYSE:MPC), and pharmaceutical concern Bristol-Myers Squibb Co (NYSE:BMY). Here's a quick roundup of how this trio of names is performing on the charts so far.

Big media stocks are rallying today, after the Supreme Court ruled online streaming service Aereo violated broadcasters' copyright laws. Among the top performers is CBS, which was up 5.3% at last check to trade at $61.97. Meanwhile, in the options pits, put volume on CBS Corporation has surged to three times the intraday average, with the three most active strikes of the day being July-dated puts. With many of these contracts crossing near the bid, sellers appear to be driving a healthy portion of the volume. Currently, CBS' Schaeffer's Volatility Index (SVI) stands at a 12-month peak of 45% -- which is good news for today's front-month option sellers, as it suggests premium is relatively inflated on this series of contracts.

MPC has plunged 6.7% to linger near $80.66, as reports that the U.S. will start exporting unrefined oil for the first time in almost 40 years weighs heavily on domestic refiners. In response, overall options activity on Marathon Petroleum Corp has spiked to roughly 10 times what is typically seen at this time of day. From a broader perspective, MPC sports a Schaeffer's put/call open interest ratio (SOIR) of 1.72, which ranks in the highest percentile of its 12-month range. In other words, the stock's short-term put open interest (compared to call open interest) is at an annual-high level right now. Unlike CBS, MPC's SVI sits at an annual low of 23%, meaning now is an opportune time to purchase front-month options at a relatively inexpensive price.

BMY is up 2.9% right now to trade at $49.70, after the company announced it had stopped a late-stage skin cancer drug trial due to "superior overall survival" of its patients. Meanwhile, near-term calls are the options of choice on Bristol-Myers Squibb today, accounting for nine of the 10 most active strikes. This represents a change of pace from the withstanding trend in BMY's options pits. At present, the stock's SOIR of 1.17 ranks just 2 percentage points from a 12-month peak, demonstrating a heavier-than-usual demand for puts over calls among options expiring within the next three months.


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