Schaeffer's Trading Floor Blog

Stocks to Watch Tuesday: Trulia Inc, Newmont Mining Corp, and Finisar Corporation

Analyzing TRLA, NEM, and FNSR ahead of tomorrow's trading

by 4/21/2014 4:58 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 real estate website Trulia Inc (NYSE:TRLA), gold miner Newmont Mining Corp (NYSE:NEM), and telecom equipment maker Finisar Corporation (NASDAQ:FNSR). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Trulia Inc (NYSE:TRLA)

Trulia spiked 7.3% today to close at $34.22, after the company signed a direct data license with My Florida Regional MLS, allowing brokers to directly market listings on its website. In the stock's options pits, call volume jumped slightly higher, and some of this activity could be due to short sellers picking up options-related insurance against more upside on TRLA. Short interest on the equity climbed 14.5% during the most recent reporting period, and now accounts for a whopping 35.4% of the stock's available float. It would take close to two weeks to cover these bearish bets, at Trulia's average pace of trading.

Newmont Mining Corp (NYSE:NEM)

Newmont bounced 6.4% today, finishing the session at $25.05, amid reports of a (short-lived) all-stock merger bid from Barrick Gold Corporation (USA) (NYSE:ABX). Meanwhile, NEM option players scooped up contracts at a rate that more than doubled the daily average, and by the end of the session, north of two calls had traded for each put. This is just more of the same on NEM, though. To be specific, the equity's 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio comes in at 8.00, indicating calls bought to open have outnumbered puts by a margin of 8-to-1 during the past 20 sessions.

Finisar Corporation (NASDAQ:FNSR)

Finisar bounced to a new two-year high of $28.43 earlier today, before settling with a 1% gain at $28.13. Nevertheless, puts were once again the contracts of choice in FNSR's options pits. In fact, put volume outpaced the typical daily amount by a margin of more than 3-to-1, with the May 27 strike taking center stage. It appears speculators bought to open puts, expecting FNSR to backpedal below $27 by front-month options expiration. Of note, the stock closed south of this level last Wednesday.


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