Schaeffer's Trading Floor Blog

Stocks to Watch Tuesday: The Men's Wearhouse, Inc., Humana Inc, and Finisar Corporation

Analyzing MW, HUM, and FNSR ahead of tomorrow's trading

by 2/24/2014 4:50 PM
Stocks quoted in this article:

Momentum names that made notable moves on Monday and could continue to do so into Tuesday's session include men's clothing specialist The Men's Wearhouse, Inc. (NYSE:MW), health insurance name Humana Inc (NYSE:HUM), and telecom equipment maker Finisar Corporation (NASDAQ:FNSR) . Here is a quick look at these stocks ahead of tomorrow's opening bell.

The Men's Wearhouse, Inc. (NYSE:MW)

The Men's Wearhouse jumped 7.5% today to close at $48.51, after the retailer upped its bid for Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) by 10%. As such, the stock saw heavier-than-usual traffic through its options pits, particularly on the put side, where volume spiked to nearly six times the average daily amount. By the end of the session, the number of puts traded slightly outpaced calls, which is atypical to the recent trend of options activity. In fact, during the past month, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open more than 18 calls for every put on MW, resulting in a 20-day call/put volume ratio of 18.32.

Humana Inc (NYSE:HUM)

Humana shot to a record high of $114.76 today, after announcing the government's proposed funding cuts to the private Medicare program are less than previously expected. Meanwhile, options traders responded by picking up more than two times the usual daily amount of contracts. To be specific, speculators zeroed in on the weekly 2/28 series of options, which accounted for six of the 10 most active strikes of the day. At the market's close, HUM was positioned 10.6% higher at $113.69.

Finisar Corporation (NASDAQ:FNSR)

Piper Jaffray cut its price target on Finisar to $30 from $34 this morning, leading the shares to finish the session 4.6% lower at $23.40. Today's negative price action is not reflective of the stock's longer-term trend, as the equity maintains a 12-month gain of 54.4%. Nevertheless, calls and puts both changed hands at about double the average daily pace, as speculators on both sides of the aisle focused on newly front-month options. In fact, the top 10 most active strikes of the day were all part of the March series.


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