Schaeffer's Trading Floor Blog
Stocks quoted in this article:

Around midday, three of the top market movers are gaming giant Caesars Entertainment Corp (NASDAQ:CZR), restaurateur El Pollo Loco Holdings Inc (NASDAQ:LOCO), and cloud computing expert Rackspace Hosting, Inc. (NYSE:RAX). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • CZR is off 12% this afternoon to trade near $12.03, as traders react to the company's steep second-quarter loss and debt restructuring decision. This only adds to the shares' technical woes -- the stock is down more than 44% year-to-date, and just moments ago, hit a fresh annual low of $11.50. Not surprisingly, short interest levels on Caesars Entertainment Corp are high. Specifically, 29.5% of the equity's float is sold short, which would take nearly three weeks to buy back, at CZR's average daily trading rate.

  • LOCO has shed 5.5% to $33.83, on a surge in short selling. Nevertheless, since going public in late July, the shares are up about 78%. Elsewhere, on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), long puts have been preferred over long calls. Specifically, since options started trading on the stock last Monday, El Pollo Loco Holdings Inc's put/call volume ratio across this trio of exchanges is 1.34.

  • RAX is struggling in the wake of last night's poorly received second-quarter results, with the shares down 7.5% at $28.95. Exacerbating the sell-off is a $2 price-target cut to $43 at Piper Jaffray (although J.P. Morgan Securities raised its target by $2 to $37). Longer term, Rackspace Hosting, Inc. has tumbled 26% in 2014, pressured lower by its 10-month moving average. Short sellers aren't doing the stock any favors, either -- in fact, short interest spiked 15.4% over the last two reporting periods, and now represents 13% of RAX's float. This amount would take 9.3 sessions to cover, at the equity's typical trading levels.


permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.