Schaeffer's Trading Floor Blog

Stocks to Watch Wednesday: Sprint Corporation, 3D Systems Corporation, and Gogo Inc

Analyzing S, DDD, and GOGO ahead of tomorrow's trading

by 4/29/2014 5:30 PM
Stocks quoted in this article:

Momentum names that made notable moves on Tuesday and could continue to do so into Wednesday's session include telecom services provider Sprint Corporation (NYSE:S), 3D printing technology manufacturer 3D Systems Corporation (NYSE:DDD), and in-flight connectivity expert Gogo Inc (NASDAQ:GOGO). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Sprint Corporation (NYSE:S)

Sprint powered 11.3% higher today to close at $8.27, thanks to the company's upbeat first-quarter earnings announcement this morning. Meanwhile, in the options pits, S put volume spiked to three times the average daily amount; however, it looks like a healthy portion of these contracts may have been sold to close at the May 7 strike. Looking back over the past 10 weeks, Sprint has been a popular target among option bulls, despite sporting a steep year-to-date deficit of more than 23%. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 8.56 ranks higher than all other comparable readings from the past year, insinuating an annual-high level of call buying, relative to put buying; however, some of this may be the work of short sellers hedging their bets, as 8.2% of S' float is sold short.

3D Systems Corporation (NYSE:DDD)

3D Systems' poorly received earnings report sent the shares 9.1% into the red to close at $44.80. Shortly after the opening bell, the stock was placed on the short-sale restricted (SSR) list, helping its overall options volume to skyrocket to 92,000, or three times the expected daily amount. While calls and puts traded at a nearly neck-and-neck pace, the two most active strikes in DDD's options pits were weekly 5/2 puts, which saw a mix of buy- and sell-to-open activity. From a broader perspective, nine of the 10 most active strikes had expiration dates within the next three weeks.

Gogo Inc (NASDAQ:GOGO)

Gogo found itself on the SSR list right out of the gate today, and by the closing bell, the shares had plummeted 28.6% to trade at $13.12, affected by news that rival AT&T Inc (NYSE:T) will begin offering WiFi service to airline passengers late next year. In response, options activity on GOGO went through the roof. Call volume ramped up to about four times the amount typically seen in one session, while puts traded at roughly ten times the average daily rate. May-dated calls were the main attraction in GOGO's options pits, accounting for the four most active strikes of the day. It seems a significant number of contracts traded at these strikes were sold to open, suggesting speculators were placing a ceiling on GOGO's short-term price level.


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