Stocks quoted in this article:
Three stocks seeing notable options activity today are game maker King Digital Entertainment PLC (NYSE:KING), biopharmaceutical firm Arrowhead Research Corp (NASDAQ:ARWR), and Detroit darling Ford Motor Company (NYSE:F). Here's a look at how today's options traders have been placing their bets on KING, ARWR, and F.
- It's a dismal day for KING, following a poorly received earnings report and subsequent round of bearish brokerage notes. At last check, the shares were off 22.8% to trade at $14.05, after earlier bottoming out at a fresh record low of $13.65. Against this backdrop, the stock has been relegated to the short-sale restricted list, sending options volume soaring to 21 times the average intraday pace. Diving deeper, a number of speculators are calling a bottom to King Digital Entertainment PLC's downward trajectory by selling to open the stock's September 13 put.
- ARWR is also trading lower in the wake of its fiscal third-quarter results, down 6.2% to linger near $12.20. On the heels of this scheduled announcement, the stock's 30-day at-the-money implied volatility has plunged 57.8% to 91.1% -- in the lower end of its annual range. Overall option volume, meanwhile, is trading at 10 times what's typically seen at this point in the day, with calls outpacing puts by a more than 2-to-1 margin. The most active Arrowhead Research Corp option is the September 15 call, and according to data from the International Securities Exchange (ISE), there's a mix of buying- and selling-to-open activity happening here.
- F is in the green today, after Stifel Nicolaus raised its outlook on the stock to "buy" from "hold," citing better-than expected year-to-date sales trends, as well as the upcoming launch of the company's new F-150 pick-up. At midday, shares of F are 1.1% higher to hover around $17.40, bringing the equity's year-to-date lead to an impressive 12.8%. In the security's options pits, calls are trading at two times the expected intraday amount, with the majority of the action centering on F's September 17 and January 2015 18-strike calls. According to Trade-Alert, it appears one speculator is rolling her bullish bet up and out amid F's continued uptrend.