Friday's Best and Worst Stocks: JNPR, DLTR, WYNN, and WFM

Juniper Networks, Inc. (NYSE:JNPR) and Dollar Tree, Inc. (NASDAQ:DLTR) have managed to buck Friday's bearish trend, while Wynn Resorts, Limited (NASDAQ:WYNN) and Whole Foods Market, Inc. (NASDAQ:WFM) have not

Sep 24, 2015 at 1:48 PM
facebook twitter linkedin


Fridays have been a terrible day to own stocks in 2015, as evidenced by the SPDR S&P 500 ETF's (SPY) average Friday loss of 0.2% -- easily the worst of all the trading days. However, not all equities have been affected by this negative price action, with networking specialist Juniper Networks, Inc. (NYSE:JNPR) and discount retailer Dollar Tree, Inc. (NASDAQ:DLTR) managing to buck the bearish trend in a big way. On the flip side, casino concern Wynn Resorts, Limited (NASDAQ:WYNN) and organic grocer Whole Foods Market, Inc. (NASDAQ:WFM) have turned in two of the worst Friday performances so far this year.

JNPR, for instance, has averaged a Friday return of 0.3% in 2015, and has been positive 61.1% of the time. Longer term, the shares are up almost 12% year-to-date. Although the equity is trading 1.3% lower today at $25.03 amid broad-market headwinds, it could find a foothold atop its 200-day moving average -- a trendline that has served a mostly supportive role for JNPR since late January.

In the options pits, put buyers have been active in recent weeks, per JNPR's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.92 -- in the 91st annual percentile. In other words, puts have been bought to open over calls at a near-annual-high clip. Should Juniper Networks, Inc. resume its longer-term uptrend, an unwinding of these bearish bets could propel the shares higher.

DLTR is also succumbing to today's broader bearish bias, down 1.9% at $68.55, and paring its year-over-year gain to 23%. The stock could be poised to shift gears tomorrow, though, if history repeats itself. Specifically, DLTR has been positive roughly 64% of Fridays in 2015, averaging a return of 0.1%.

Short sellers, meanwhile, have been upping the bearish ante of late, with short interest surging 22.8% in the past two reporting periods. However, this still only accounts for 2.9% of Dollar Tree, Inc.'s available float, and would take just over two days to cover, at average daily trading volumes.

150924fridaybest

WYNN tumbled to a fresh five-year low of $59.75 earlier, but was last seen off 0.4% at $60.01 -- extending recent analyst-induced downside. This is just more of the same for a stock that's shed 60% year-to-date, and the equity may add to these losses tomorrow, if past is precedent. In fact, WYNN has averaged a Friday loss of 0.8% in 2015, and has been positive less than 20% of the time.

Nevertheless, option traders have been initiating long calls over puts at a faster-than-usual clip in recent weeks, per WYNN's 10-day ISE/CBOE/PHLX call/put volume ratio of 1.62 -- in the 71st annual percentile. A capitulation by these option bulls in light of Wynn Resorts, Limited's technical struggles could send the shares to lower lows.

WFM is down 1% this afternoon at $31.08, and just a chip-shot away from its Aug. 24 four-year low of $30.18. This just echoes the equity's withstanding trajectory, with WFM staring at a 38% year-to-date deficit. What's more, the shares have shed 0.6%, on average, on Fridays in 2015, and have been positive just one-quarter of the time.

Against this backdrop, option traders have been quick to place bearish bets. At the ISE, CBOE, and PHLX, for example, WFM's 10-day put/call volume ratio of 1.97 is docked at an annual high. Plus, Whole Foods Market, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 1.08 ranks just 5 percentage points from a 52-week peak, meaning short-term speculators have rarely been as put-skewed as they are now.

150924fridayworst

To see which stocks you should be watching on Wednesday, click here. Meanwhile, here's a list of Thursday's best- and worst-performing equities.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners