Schaeffer's Trading Floor Blog

Stocks to Watch Thursday: NVIDIA Corporation, Rite Aid Corporation, and Expedia Inc

Analyzing NVDA, RAD, and EXPE ahead of tomorrow's trading

by 2/19/2014 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 chip maker NVIDIA Corporation (NASDAQ:NVDA), drugstore chain Rite Aid Corporation (NYSE:RAD), and online travel company Expedia Inc (NASDAQ:EXPE). Here is a quick look at these stocks ahead of tomorrow's opening bell.


NVIDIA has bolted up the charts over the past two-plus weeks, tagging higher highs along the way. In fact, the stock reached a fresh two-year peak of $18.30 earlier today. Now, after closing the session with a 1.3% lead at $18.14, the shares are standing 18.4% above their Feb. 5 intraday low of $15.32. Stepping back, NVDA has been a technical outperformer for quite some time, with a year-over-year gain of 42.5%. Still, short interest grew 9.7% during the last two reporting periods, and now accounts for a lofty 10.9% of the equity's available float. It would take nearly 10 sessions to cover these bearish bets, at the stock's average daily volume.

Rite Aid Corporation (NYSE:RAD)

Rite Aid has been traveling north since announcing its expanded distribution agreement with McKesson Corporation (NYSE:MCK) on Tuesday morning. Today, the stock flew to a six-year high of $6.55, before finishing the session with a 2.2% gain at $6.41. Subsequently, overall options volume surged to three times the average daily amount, with calls more than quadrupling puts. Today's preference for calls over puts is nothing new for RAD, which sports a top-heavy 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 23.19, demonstrating speculators have bought to open more than 23 times the number of calls as puts during the past month.

Expedia Inc (NASDAQ:EXPE)

Expedia soared to an all-time high of $80.68 this afternoon, closing the session with a 2.1% lead at $79.62. Today's positive price action is reflective of the stock's six-month track record, during which the shares have advanced roughly 70%. Like NVIDIA, EXPE has been subject to heavy short-selling activity. Currently, the bearish bets account for 11.1% of the equity's float, representing more than four days' worth of pent-up buying demand, at the stock's average pace of trading. Should Expedia continue its upward trajectory, the shares may end up benefiting from a short-squeeze scenario in the near term.

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