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

Momentum names that made notable moves on Wednesday and could continue to do so into Thursday's session include video game developer Activision Blizzard, Inc. (NASDAQ:ATVI), image-sensing device maker OmniVision Technologies, Inc. (NASDAQ:OVTI), and cancer treatment specialist Geron Corporation (NASDAQ:GERN). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Activision Blizzard, Inc. (NASDAQ:ATVI)

Activision has been moving up the charts over the last few sessions, and today, the equity climbed to a new record peak of $21.57, before settling at $21.48 at the closing bell. Off the charts, it appears last week's news of a lawsuit against CEO Robert Kotick has been overshadowed by ATVI's next-generation video game lineup at this year's Electronic Entertainment Expo, which kicked off yesterday. Today, overall options volume on ATVI grew to more than two times the expected daily amount, with call contracts roughly tripling puts. Looking back over the last two weeks shows more than 10 calls have been bought to open for every put, and the resulting 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 10.53 ranks in the top 5% of its 12-month range. In other words, long ATVI calls have been scooped up over puts at a near-annual-high clip recently.

OmniVision Technologies, Inc. (NASDAQ:OVTI)

OmniVision finished the session 2.5% higher at $23.69, but not before peaking at a fresh two-year high of $23.78 earlier in the day. From a broader technical standpoint, the equity has tacked on an impressive 67% from its Feb. 3 year-to-date low of $14.17. Nevertheless, short interest on OVTI has grown by 13.7% since the April 1 reporting period, bringing the total number of shares sold short to 5.1 million. This is equivalent to 9.2% of the stock's available float -- signaling a healthy amount of sideline cash. In other words, OVTI may be positioned to benefit from short-covering activity, which could give the shares an additional boost going forward.

Geron Corporation (NASDAQ:GERN)

Geron spiked 11.1% today to close at $2.61, and now boasts an impressive five-day gain of more than 31%. Meanwhile, in the options pits, calls traded at roughly 14 times the average daily pace, and outnumbered puts by a more than 13-to-1 margin. A number of speculators may have high hopes of GERN returning north of $3 -- for the first time since mid-March -- by the end of the year, as there appears to have been heavy buy-to-open activity at the December 3 call today. This action echoes a longer-term options trend on GERN, which sports a 20-day ISE/CBOE/PHLX call/put volume ratio of 9.61, with nearly 10 calls bought to open for every put during the past month. However, given that 16.4% of the stock's float is sold short, it is possible that some of this call buying was actually the work of short sellers hedging against additional gains.


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