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

Momentum names that made notable moves on Monday and could continue to do so into Tuesday's session include tech powerhouse Apple Inc. (NASDAQ:AAPL), solar power concern JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), and cloud computing expert Salesforce.com, inc. (NYSE:CRM). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Apple Inc. (NASDAQ:AAPL)

Apple bounced to a 52-week high of $595.75 earlier today, and finished the session with a 3.9% gain to trade at $594.09, following news that the company is preparing for a huge debt sale of $17 billion -- the proceeds of which will be used to increase AAPL's share buyback program. The good news may have helped to spur a change of pace in AAPL's options pits. To be specific, the equity maintains a 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.73, which ranks just 1 percentage point from a 12-month peak, insinuating puts have been bought to open, relative to calls, at a near-annual-high rate during the past 10 weeks. Today, however, AAPL option players exchanged calls at a pace that more than doubled the typical daily amount, with the three most active strikes of the day being weekly 5/2 calls.

JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO)

JA Solar was one of many in the alternative energy sector to take a technical beating today, plunging 10.4% to close at $9.53. Shortly after 1 p.m., the stock found itself on the short-sale restricted list, and by the end of the session, it saw nearly quadruple the average daily amount of puts exchanged. To be more specific, approximately 11,000 puts were exchanged, with the 10,175 contracts crossing the tape at the June 10 put accounting for nearly two-thirds of the day's total options volume. This activity reflects a broader trend in JASO's options pits, as the equity currently sports a top-heavy 10-day ISE/CBOE/PHLX put/call volume ratio of 9.52. What's more, this ratio ranks the highest of all other comparable readings taken during the past year, indicating the recent rate of put buying, relative to call buying, is at an annual-high level.

Salesforce.com, inc. (NYSE:CRM)

Salesforce.com dove 7% today to close at $49.13, marking a 26.7% descent from the stock's Feb. 28 all-time high of $67.00. In the options pits, meanwhile, CRM's 30-day at-the-money implied volatility reached annual-high levels, spiking to 49.5% as speculators zeroed in on the equity's short-term contracts. Particularly, put volume ramped up to nearly four times the average daily amount, in part due to the 17,323 contracts exchanged at the weekly 5/2 47-strike put. Not to mention, nine of the day's 10 most active CRM options were of the short-term variety.


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