Schaeffer's Trading Floor Blog
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Momentum names that made notable moves on Monday and could continue to do so into Tuesday's session include bookseller Barnes & Noble, Inc. (NYSE:BKS), mining company Silver Wheaton Corp. (USA) (NYSE:SLW), and biopharmaceutical firm MannKind Corporation (NASDAQ:MNKD). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Barnes & Noble, Inc. (NYSE:BKS)

Barnes & Noble jumped 8.8% today to close at $16.06, after word hit the Street that the company laid off its Nook hardware engineering staff. Subsequently, option traders responded enthusiastically, picking up more than six times the average daily amount of contracts. In fact, by the end of the session, 28,000 options were exchanged, with call volume more than tripling put volume. Even more specific, it appears a healthy number of traders bought to open February 15 calls, banking on BKS to extend its trek north of the $15 mark through front-month options expiration next Friday. Year-to-date, the shares have tacked on 7.4%.

Silver Wheaton Corp. (USA) (NYSE:SLW)

Silver Wheaton bounced 3.4% today to perch at $23.38, thanks to a price-target hike to C$25 from C$24 at Credit Suisse this morning. Meanwhile, speculators overflowed the stock's options pits, trading contracts at a rate that nearly tripled the average daily pace. While both sides of the aisle saw an acceleration of activity, calls still outnumbered puts by a healthy margin of more than 2-to-1. From a longer-term technical perspective, SLW is down about 36% on a year-over-year basis, but has been in rebound mode since the start of 2014, climbing 15.8% already.

MannKind Corporation (NASDAQ:MNKD)

MannKind advanced 5.6% today to $5.69, as rumors of a potential partnership announcement (expected next Tuesday, Feb. 18) circulated the Internet. Longer-term, MNKD is no stranger to positive price action, as the shares are currently up almost 120% year-over-year. Therefore, it comes as no surprise speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been very bullish during the past two weeks, buying to open more than 27 calls for every put. The resulting 10-day call/put volume ratio of 27.37 is just 6 percentage points short of a 12-month peak, further demonstrating a near-annual-high preference for long calls over puts of late. However, it's worth noting that short interest accounts for 28.8% of the stock's float, so some of the recent call buying -- especially the out-of-the-money variety -- may be attributable to hedging activity among the shorts.


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