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

Momentum names that made notable moves on Thursday and could continue to do so into Friday's session include for-profit education concern ITT Educational Services, Inc. (NYSE:ESI), therapeutic drug developer ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS), and apparel name Perry Ellis International, Inc. (NASDAQ:PERY). Here is a quick look at these stocks ahead of tomorrow's opening bell.

ITT Educational Services, Inc. (NYSE:ESI)

After pulling its full-year fiscal forecast and predicting a 4% decline in first-quarter new student enrollment, ESI sunk to a new annual low of $17.54, and finished the session down 20.5% at $20.50. The move lower landed the equity on the short-sale restricted (SSR) list, causing bearish speculators to rush into the options pits. Specifically, ITT Educational Services, Inc. put volume ran at 19 times the average single-session pace. Of course, this is business as usual for the stock, which has racked up a 10-day put/call volume ratio of 3.04 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio is higher than 87% of similar readings from the past year, demonstrating the prevailing bias for bearish bets over bullish in ESI's options pits.

ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS)

Meanwhile, ISIS tacked on more than 7.5% to finish the day at $24.95, thanks to news of a successful blood-thinner trial. However, the shares remain roughly 37% lower on a year-to-date basis. As such, option traders may have placed bets on a short-term pullback in ISIS Pharmaceuticals, Inc., as there appeared to be buy-to-open activity at its June 24 put. Taking a step back, the stock's 10-day ISE/CBOE/PHLX put/call volume ratio is just 3 percentage points shy of an annual bearish high, at 2.58.

Perry Ellis International, Inc. (NASDAQ:PERY)

Finally, PERY soared today -- adding 15.3% by the closing bell to trade at $17.05 -- on a first-quarter earnings beat. However, shares of the fashion name remain about 13% lower since this time last year. Elsewhere, Perry Ellis International, Inc. options were in high demand -- especially on the put side of the fence, where actual daily volume outpaced the expected amount by a 30-to-1 count. This is unusual, given the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.69, which both rests at an annual low, and indicates call open interest outstrips put open interest among options expiring in the next three months. Accordingly, if PERY resumes its longer-term struggles, a change in sentiment among option bulls could pressure the shares lower.

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