Stocks quoted in this article:
Momentum names that made notable moves on Tuesday and could continue to do so into Wednesday's session include semiconductor maker Marvell Technology Group Ltd. (NASDAQ:MRVL), data storage provider SanDisk Corporation (NASDAQ:SNDK), and biopharmaceutical company Questcor Pharmaceuticals Inc (NASDAQ:QCOR). Here is a quick look at these stocks ahead of tomorrow's opening bell.
Marvell Technology Group Ltd. (NASDAQ:MRVL)
Marvell shares spiked to a two-year high of $16.65 out of today's gate, despite the company being ordered to pay "enhanced damages" for deliberate patent infringement. At the close, the shares maintained a 2.9% gain to trade at $16.20. Moreover, MRVL saw its overall options volume significantly outpace expected daily levels, especially on the put side, where contracts traded at 21 times the average amount. Digging deeper into the data shows that a number of option bears may have hit the exits amid today's positive price action. Specifically, two large blocks nearing 15,000 puts crossed at the May 14 and 15 strikes, and these contracts may have been sold to close.
SanDisk Corporation (NASDAQ:SNDK)
SanDisk shares climbed to a 14-year peak of $83.52 today, following the company's recent introduction of the world's highest capacity microSD card. At the close, the shares were positioned 2.4% higher to trade at $83.12, bringing their year-to-date gain to 17.8%. Despite its technical success, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.21 ranks the highest of all comparable readings from the past year. This means option players have bought to open puts over calls at an annual-high pace recently. An extension of SNDK's upward trajectory may lead option bears to hit the exits, which could create additional technical tailwinds for the shares.
Questcor Pharmaceuticals Inc (NASDAQ:QCOR)
Questcor bounced 7% higher today to close at $69.47, and is now sitting 27.6% higher on a year-to-date basis. Nevertheless, short interest on QCOR accounts for 30.3% of the stock's available float, or 17.49 million shares. It would take about seven sessions to cover these bearish bets, at QCOR's average pace of trading. Perhaps the equity will see a bout of short-covering activity in the near term, should it continue to climb up the charts.