FCAU call options are active on reports of Chinese bidders circling the company
U.S. stocks have managed a positive start to the week, following reassurances from top military officials over the weekend concerning the ongoing U.S.-North Korea tensions. Chinese retailer JD.com Inc (ADR) (NASDAQ:JD), entertainment concern Netflix, Inc. (NASDAQ:NFLX), and auto company Fiat Chrysler Automobiles NV (NYSE:FCAU) are three stocks in the news this morning. Here's a quick look at what's moving shares of JD, NFLX, and FCAU.
JD Stock Slides on Steep Second-Quarter Loss
JD.com stock is taking a hit this morning following a wider-than-expected second-quarter loss. At last glance, the online retailer was trading down 4.8% at $43.69. JD stock hit a record high of $48.99 on Aug. 8, but today's pullback has dropped the shares all the way down to the vicinity of their 40-day moving average, which previously contained JD's March lows.
In the weeks leading up to earnings, options traders took a bullish approach to JD. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JD.com carries a 10-day call/put volume ratio of 7.41, which ranks in the 74th annual percentile. This ratio indicates that calls were bought to open at a much faster pace than normal, relative to puts.
Barron's Warns Netflix Could Plummet 50%
According to the latest Barron's cover story, NFLX's share price could be cut in half, sparked by rising competitive threats from Amazon, Walt Disney, and Facebook. NFLX is down just 0.3% at $170.81 this morning, paring its year-to-date gain to about 38%.
Unlike Barron's, most analysts remain upbeat on Netflix stock. Nineteen analysts maintain a "strong buy" or "buy" rating on the shares, compared to only 11 "hold" or "sell" suggestions.
Fiat Chrysler Shares Get M&A Boost
FCAU stock is trading up 8.2% at $12.56 -- a new record high -- following an Automotive News report that a Chinese automaker submitted "at least one offer" to buy the company earlier this month, with other Chinese suitors said to be conducting due diligence on Fiat, as well. The news has sparked an early rush toward bullish bets on FCAU, with nearly 4,000 call options traded so far -- representing three times the expected intraday level, and already exceeding the auto stock's average daily volume of fewer than 3,500 calls.