Schaeffer's Trading Floor Blog

Stocks to Watch Thursday: TripAdvisor Inc, Biogen Idec Inc, and SUPERVALU INC.

Analyzing TRIP, BIIB, and SVU ahead of tomorrow's trading

by 2/12/2014 4:38 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 online travel company TripAdvisor Inc (NASDAQ:TRIP), biotech firm Biogen Idec Inc (NASDAQ:BIIB), and grocery tycoon SUPERVALU INC. (NYSE:SVU). Here is a quick look at these stocks ahead of tomorrow's opening bell.

TripAdvisor Inc (NASDAQ:TRIP)

After reporting strong fourth-quarter revenue growth, and receiving many positive brokerage notes, TripAdvisor bolted to a record high of $93.13, before scaling back its gains to 7.2% to close at $90.27. Heading into last night's quarterly announcement, TRIP option players were more call-heavy than usual, which is a trend that continued into today's session. Overall options volume ramped up to almost seven times the average daily amount, with calls outnumbering puts by a margin of nearly 3-to-1. What's more, eight of the day's 10 most active strikes were calls that expire over the next five-plus weeks.

Biogen Idec Inc (NASDAQ:BIIB)

Biogen Idec ran to an all-time high of $326.34, before finishing the session with a 1% lead at $323.04. Today's gains are just more of the same for the equity, which is up 96.5% on a year-over-year basis. Nevertheless, option traders turned their noses up at BIIB's technical milestone, swapping roughly two times the typical daily amount of puts. By the end of the session, 6,079 puts were exchanged, compared to 5,259 calls.

SUPERVALU INC. (NYSE:SVU)

SUPERVALU shed 1.2% today to close at $5.82, and is now facing a year-to-date deficit of more than 20%. Regardless of this technical turmoil, option traders have been very bullish toward the stock. In fact, over the past 10 trading days, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open roughly 113 calls for every put, resulting in a top-heavy call/put volume ratio of 112.96. What's more, this reading ranks just 8 percentage points from a 12-month peak, meaning the recent demand for long calls over puts is nearing annual-high levels.


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