Buzz Stocks: Anavex Life Sciences Corp., Canadian Solar Inc., and Tesla Motors Inc

Today's stocks to watch include Anavex Life Sciences Corp. (AVXL), Canadian Solar Inc. (CSIQ), and Tesla Motors Inc (TSLA)

Mar 10, 2016 at 9:15 AM

U.S. stocks are set to open higher, following the European Central Bank's (ECB) stimulus decision. Among equities in focus are drugmaker Anavex Life Sciences Corp. (NASDAQ:AVXL), alternative energy stock Canadian Solar Inc. (NASDAQ:CSIQ), and Model S designer Tesla Motors Inc (NASDAQ:TSLA).

AVXL is poised to pop 8.7% at the open, after the drugmaker extended its trial for an Alzheimer's treatment by two years. The shares could certainly use the boost, considering they've lost over 65% since their four-year high of $14.84 in early November, settling yesterday at $5.16. Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been betting bullishly on Anavex Life Sciences Corp. in recent weeks -- buying to open 4.42 calls for every put.

On the flip side, CSIQ is pointed 6.3% lower pre-market, as traders react negatively to the solar company's disappointing revenue guidance -- which is overshadowing its better-than-expected fourth-quarter earnings. Ahead of the earnings report, option traders took a glass-half-full approach. Canadian Solar Inc.'s 10-day ISE/CBOE/PHLX call/put volume ratio of 2.81 ranks near the top quartile of its annual range. Possibly even more optimistic than option traders have been analysts, as all eight brokerage firms tracking the stock rate it a "strong buy." Technically speaking, however, CSIQ hasn't been much to write home about, losing nearly one-quarter of its value year-to-date at $21.76.

The Virginia Automobile Dealers Association (VADA) has filed suit against TSLA, attempting to block the automaker from opening a second dealership in the state. However, the stock is seemingly shrugging off the news, up nearly 2% ahead of the bell. In fact, Tesla Motors Inc has been on a tear since its two-year low of $141.05 in early February, soaring 48% to trade at $208.72. As such, bearish option traders -- and infamous short seller Citron Research -- may be starting to get nervous. During the past two weeks at the ISE, CBOE, and PHLX, TSLA has amassed a put/call volume ratio of 1.16, which sits just 6 percentage points from an annual high.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.