Schaeffer's Trading Floor Blog

Biggest Movers: Weight Watchers International, Inc., T-Mobile US Inc, and Overstock.com, Inc.

WTW, TMUS, and OSTK are moving sharply in Thursday's trading

by 5/1/2014 3:27 PM
Stocks quoted in this article:

As we approach the final minutes of the trading day, three of the top movers are weight-management services name Weight Watchers International, Inc. (NYSE:WTW), mobile carrier T-Mobile US Inc (NYSE:TMUS), and online retailer Overstock.com, Inc. (NASDAQ:OSTK). Here's a quick roundup of how this trio of names is performing on the charts this afternoon.

  • Following an impressive turn in the earnings confessional last night -- the company topped analysts' estimates in the first quarter and lifted its full-year forecast -- WTW has added 18.5% to $23.47. Prior to today, however, WTW had been grinding lower ever since a poorly received earnings announcement last August. Since its annual peak of $48.63, reached on July 31, the stock has bisected itself (even in light of today's surge). Against this backdrop, it's not a surprise to see heavy short-selling activity on Weight Watchers International, Inc. Short interest represents more than 38% of the stock's float, and it would take nearly 14 trading days (at the stock's average daily volume) to eradicate all of these bearish bets. In the wake of today's dramatic bounce, some of the more anxious short sellers could get spooked and head toward the exits.

  • TMUS shares have zoomed up 7.6% today, as investors digest the company's latest earnings news, and continued reports that Sprint Corporation (NYSE:S) is hoping to acquire the smaller carrier. Despite the move, the stock is still in the red for the year, down 6.3% at $31.50. Into the close, the shares are wrestling with their 80-day moving average, above which the stock has not closed since April 9. T-Mobile US Inc shares had powered through this trendline earlier today, dipped back below it, and are currently sitting slightly on the north side.

  • On the other side of the fence, OSTK has not been so lucky. Shares of the retailer have dropped 5.6% to $15.15, hitting a new annual low of $14.89 along the way. Today's decline has occurred on no significant news, although the shares have been in decline mode since last Thursday's earnings report. Although Overstock.com, Inc. has lost more than 50% in 2014 alone, some options speculators still maintain a chipper outlook. During the last 50 trading days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a call/put volume ratio of 2.48, meaning nearly 2.5 calls have been bought to open for every put. Additionally, this ratio ranks higher than 58% of all annual readings, suggesting demand for long calls (versus puts) is slightly elevated.

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