Schaeffer's Trading Floor Blog

Stocks On the Move: BlackBerry Ltd, MGIC Investment Corp., and Time Warner Inc

BBRY, MTG, and TWX are moving sharply in Wednesday's trading

by 7/16/2014 12:16 PM
Stocks quoted in this article:

Around midday, three of the top market movers are mobile phone maker BlackBerry Ltd (NASDAQ:BBRY), mortgage insurance issue MGIC Investment Corp. (NYSE:MTG), and entertainment kingpin Time Warner Inc (NYSE:TWX). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • BBRY has fallen on news of a partnership between Apple Inc. (NASDAQ:AAPL) and International Business Machines Corp. (NYSE:IBM). At last check, shares of BlackBerry Ltd were off 8.5% to trade at $10.34 -- though they remain up nearly 39% year-to-date. Given such outstanding longer-term technicals, it's no surprise that option bulls have been piling on the BBRY bandwagon. Specifically, the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 4.13 ranks just 3 percentage points from a 52-week acme.

  • MTG is down 8.1% to trade at $7.68, following a lackluster second-quarter earnings report this morning. In fact, the shares -- which have lost roughly 9% year-to-date -- are testing support at the $7.60 level, which hasn't been breached since November. Bearish traders have taken notice of this unimpressive price action. MGIC Investment Corp.'s 10-day ISE/CBOE/PHLX put/call volume ratio of 0.68 stands just 14 percentage points from a 12-month high.

  • Finally, TWX raced to a nearly 13-year peak of $84.40 earlier, on reports of a Twenty-First Century Fox Inc (NASDAQ:FOXA) buyout attempt. While Time Warner Inc has pulled back slightly from the aforementioned high, the stock is still 16% above breakeven at $82.35, bringing its year-to-date advance north of 23%. At the ISE, CBOE, and PHLX, however, the equity has racked up a bearishly skewed 10-day put/call volume ratio of 1.23, which ranks above 98% of all other readings from the past year. Should these pessimistic option players capitulate amid TWX's uptrend, it could add fuel to the stock's fire.


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