Schaeffer's Trading Floor Blog

Stocks to Watch Thursday: EMC Corporation, Garmin Ltd., and Panera Bread Co

Analyzing EMC, GRMN, and PNRA ahead of tomorrow's trading

by 3/26/2014 4:46 PM
Stocks quoted in this article:

Momentum names that made notable moves on Wednesday and could continue to do so into Thursday's session include virtual infrastructure provider EMC Corporation (NYSE:EMC), GPS maker Garmin Ltd. (NASDAQ:GRMN), and bakery-cafe chain Panera Bread Co (NASDAQ:PNRA). Here is a quick look at these stocks ahead of tomorrow's opening bell.

EMC Corporation (NYSE:EMC)

EMC bounced to a fresh annual high of $28.26 this morning, after the company appointed a series of senior executives to the EMC Information Infrastructure business yesterday. At the closing bell, however, the stock settled with a 3% loss at $27.33. Although put volume spiked to more than two times the average daily amount today, calls remained the contracts of choice (on an absolute basis), with about 34% of the day's call activity occurring at the July 30 strike. Given that the majority of contracts at this strike appear to have been bought to open, speculators may have been betting on EMC reaching higher highs over the next three-plus months.

Garmin Ltd. (NASDAQ:GRMN)

Garmin jumped to a five-year high of $56.79, and closed the session with a 1.7% gain at $55.36, after receiving an upgrade to "buy" from "neutral" and a price-target lift to $65 from $50 at Citigroup this morning. While GRMN sports a 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 5.62 -- with long calls outnumbering long puts by a margin of nearly 6-to-1 -- the stock experienced a rare surge in put trading today. By the end of the session, put volume had nearly tripled the expected daily amount, with the April 55 strike receiving nearly two-thirds of this activity.

Panera Bread Co (NASDAQ:PNRA)

Panera shares plunged 8.5% today to close at $170.05, after the company declined to provide a fiscal 2015 earnings forecast at its investor day yesterday. Option traders responded by picking up roughly six times the average daily amount of contracts. More than 61% of these contracts crossed on the put side, with the May 165 strike taking center stage.


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