Schaeffer's Trading Floor Blog

Stocks to Watch Wednesday: Apple Inc. (AAPL), Newmont Mining Corp, Deckers Outdoor Corp

Watch out for AAPL, NEM, and DECK in tomorrow's trading

by 12/3/2013 5:53 PM
Stocks quoted in this article:

Trending names that could see continued notable price action into Wednesday's session include iPad parent Apple Inc. (NASDAQ:AAPL), gold miner Newmont Mining Corp (NYSE:NEM), and UGG and Teva manufacturer Deckers Outdoor Corp (NASDAQ:DECK). Here is a quick look at some interesting data surrounding these three stocks.

Apple Inc. (NASDAQ:AAPL)

Now sitting in positive territory for 2013 -- albeit by a slight 5.8% margin -- Apple shares continued higher in Tuesday's trading, gaining more than 2.7% to close at $566.32. As noted earlier this week, implied volatility for Apple's short-term options has been moving higher, making premiums more costly for option buyers. Since bottoming out at an annual low of 19% on Nov. 25, Schaeffer's Volatility Index (SVI) for Apple Inc. (NASDAQ:AAPL) has increased to 24%, which is higher than 19% of all similar readings from the past 12 months. Increased prices haven't deterred options players; total trading volume on Tuesday was 64% greater than usual, and eight of the top nine most active strikes were in the weekly 12/6 series, expiring at the end of this week.

Newmont Mining Corp (NYSE:NEM)

As gold prices continued to trade around five-month lows, Newmont Mining shares tagged a five-year low of $23.20 before settling at $23.38 at the closing bell. Even though NEM shares have lost almost 50% in 2013, call buyers are holding out hope. During the last 10 trading days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), more than four calls have been purchased to open for every put. The resulting call/put volume ratio of 4.27 is higher than all but 10% of the past year's worth of ratio readings. In other words, it looks as though some Newmont Mining speculators are hoping to catch a proverbial falling knife.

Deckers Outdoor Corp (NASDAQ:DECK)

Deckers Outdoor, meanwhile, tagged a new annual high of $86.25 during Tuesday's trading, finishing 2.5% higher on the day at $86.09. Some of the buying demand could be attributed to a morning price-target hike at Canaccord Genuity. If Deckers shares continue to trend higher, short sellers may be inclined to head toward the exits, which could result in a short-covering rally. Currently, more than one-third of DECK's float is sold short, and it would take nearly eight trading days (at the stock's average daily volume) to cover these bearish bets.


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