Schaeffer's Trading Floor Blog

Stocks to Watch Tuesday: Pandora Media Inc, Bank of America Corp, and DIRECTV

Analyzing P, BAC, and DTV ahead of tomorrow's trading

by 1/6/2014 4:52 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 streaming music provider Pandora Media Inc (NYSE:P), financial firm Bank of America Corp (NYSE:BAC), and digital broadcasting name DIRECTV (NASDAQ:DTV). Here is a quick look at these stocks ahead of tomorrow's opening bell.

Pandora Media Inc (NYSE:P)

Pandora has more than tripled in value over the past year, thanks in part to the shares' 14.1% spike to $31.49 today. (The equity hit a record high of $32.45 earlier, as well.) Needless to say, P options were flying off the shelves at a rapid-fire pace. To be specific, 70,000 contracts crossed the tape by the end of the session, which is more than three times the average daily volume of 22,000. Today's positive price action and heavy option trading came in the wake of Pandora's upbeat audience metrics report for December 2013.

Bank of America Corp (NYSE:BAC)

Bank of America has hit the ground running this year. Today, the equity finished the session 1.5% higher at $16.66 -- after climbing to a multi-year high of $16.73 -- extending its year-to-date gain to 7%. Meanwhile, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open roughly five BAC calls for every put during the past 10 trading sessions. The fact that the resulting call/put volume ratio 5.15 ranks in the 100th annual percentile means calls are in higher demand now, relative to puts, than they have been at any other time throughout the past year.

DIRECTV (NASDAQ:DTV)

DIRECTV notched an all-time high of $69.62 today, before closing the session at $69.36. From a broader perspective, the equity has gained 35.6% over the past year. Elsewhere, DTV sports a Schaeffer's put/call open interest ratio (SOIR) of 1.50, in the highest annual percentile. In other words, short-term option traders are more put-focused now than they have been at any other time during the last 12 months.


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