Schaeffer's Trading Floor Blog

Biggest Movers: SolarCity Corp, SunEdison Inc, and Electronic Arts Inc.

SCTY, SUNE, and EA are moving sharply in Wednesday's trading

by 5/7/2014 3:46 PM
Stocks quoted in this article:

As we approach the final minutes of the trading day, three of the top movers are alternative energy expert SolarCity Corp (NASDAQ:SCTY), silicon wafer producer SunEdison Inc (NYSE:SUNE), and video game issue Electronic Arts Inc. (NASDAQ:EA). Here's a quick roundup of how this trio of names is performing on the charts this afternoon.

  • SCTY, which is scheduled to report first-quarter earnings tonight, is down nearly 11% to trade at $46.74, swooning in sympathy with the rest of the solar sector. This move lower has landed the shares below the round-number $50 level, which hasn't been breached on a daily closing basis since late November. Also, the stock is currently listed on the short-sale restricted (SSR) list. On the sentiment front, option bears have been active on SolarCity Corp, as the security has racked up a 50-day put/call volume ratio of 0.69, higher than 82% of similar readings from the past year. In other words, traders have been scooping up long puts (relative to long calls) at a faster-than-usual clip in recent months.

  • In similar fashion, SUNE is off nearly 9% to wink at the $18.10 level -- just atop its ascending 80-day moving average -- earning the solar concern a place on the SSR list. Turning to sentiment, SunEdison Inc's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.60 ranks just 6 percentage points from a 52-week acme, signaling a stronger-than-usual preference for bearish bets over bullish among option traders in the past two weeks. Elsewhere, nearly one-quarter of the equity's float is sold short, representing more than four sessions' worth of pent-up buying demand, at the average daily volume. On a separate note, SUNE is slated to step into the earnings confessional bright and early tomorrow.

  • Unlike the firms mentioned above, EA streaked to a new five-year high of $33.85 today on the heels of a fiscal fourth-quarter earnings beat, and was last seen 20.6% higher at $33.82. On the options front, Electronic Arts Inc.'s 50-day put/call volume ratio on the ISE, CBOE, and PHLX checks in at 1.19, in the top quartile of its annual range. Also, nearly 9% of the equity's float is sold short, which would take roughly six sessions to cover, at the typical daily trading pace. If EA can continue to charge up the charts, an unwinding among option bears and/or covering activity among short sellers could add fuel to the stock's fire.


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