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 streaming content provider Netflix, Inc. (NASDAQ:NFLX), telecom services concern America Movil SAB de CV (ADR) (NYSE:AMX), and electronics retailer RadioShack Corporation (NYSE:RSH). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Netflix, Inc. (NASDAQ:NFLX)

Netflix popped 4.2% today to close at $364.50, and is now up 21.7% from its April 28 year-to-date low of $299.50. Nevertheless, while the shares have been making headway, short interest on NFLX climbed 39.2% during the last two reporting periods, and now accounts for 9.3% of the equity's float. A continuation of the stock's upward trajectory may spur some short-covering activity in the near term, which could offer the shares an additional boost up the charts. Looking into Netflix's options pits today, speculators were placing bets on how the equity will fare this week. In fact, the stock's 18 most active options were all of the weekly 5/23 variety, expiring at this Friday's close.

America Movil SAB de CV (ADR) (NYSE:AMX)

America Movil fell 4% today to close at $19.61, after AT&T Inc. (NYSE:T) announced plans to divest its 8% stake in AMX to facilitate T's purchase of DIRECTV (NASDAQ:DTV). Heading into today's session, AMX's 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio stood at 26.84, with speculators buying to open nearly 27 calls for every put over the past month. Today, however, the equity saw a change of pace in its options pits, as put volume spiked to more than 28 times the average daily amount, and almost quadrupled call volume. Most popular by a long shot was AMX's June 20 put, where it appears speculators bought to open contracts, expecting the shares to remain below the $20 mark through front-month options expiration.

RadioShack Corporation (NYSE:RSH)

RadioShack finished the session 4.1% lower at $1.17, and is now staring at a five-day deficit of 15.8%, amid a credit downgrade at Fitch on concerns that the company may be headed toward bankruptcy this year. While RSH was placed on the short-sale restricted list at today's open, activity in the equity's options pits was relatively sluggish. Nevertheless, calls outpaced puts by a margin of roughly 9-to-1, reflecting a broader options trend on RSH. Specifically, the stock's 10-day ISE/SBOE/PHLX call/put volume ratio of 2.01 ranks in the 74th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip during the past two weeks. It is possible that long puts are relatively unpopular right now due to the limited profit potential on the contracts.


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