4 Stocks Feeling the Weight of Apple's iPhone Woes

Apple Inc. (NASDAQ:AAPL) headwinds are hitting Avago Technologies Ltd (NASDAQ:AVGO), InvenSense Inc (NYSE:INVN), Micron Technology, Inc. (NASDAQ:MU), and Universal Display Corporation (NASDAQ:OLED)

Jan 6, 2016 at 11:25 AM
facebook twitter linkedin

Apple Inc. (NASDAQ:AAPL) is selling off on iPhone output concerns, and as usual, the anxiety is hitting the tech titan's suppliers. Among the stocks sinking in sympathy with AAPL are Avago Technologies Ltd (NASDAQ:AVGO), InvenSense Inc (NYSE:INVN), Micron Technology, Inc. (NASDAQ:MU), and Universal Display Corporation (NASDAQ:OLED).

AVGO was last seen 1.9% lower at $134.92, but from a longer-term perspective, the loss is relatively minor. After all, on a year-over-year basis, the stock has soared over 36.5%. Even today, the shares appear to be holding their ground atop their 50-day moving average.

In the options pits, though, traders have been betting against Avago Technologies Ltd. The stock's 20-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 1.22, with long puts outstripping calls. What's more, AVGO's Schaeffer's put/call open interest ratio (SOIR) of 0.84 outranks all but 2% of comparable readings from the prior year. If the shares take a bounce from the aforementioned trendline, a capitulation among these skeptics -- as well as short sellers -- could result in tailwinds.

Moving on, INVN is fresh off debuting a revolutionary gyroscope and motion tracking device, but this has done little to boost its stock. The shares are currently 3.4% lower at $9.26, and have been stair-stepping their way south since November. If short sellers have their druthers, this trend will continue. Over 17% of InvenSense Inc's float is sold short, representing 8.3 sessions' worth of trading, at typical volumes.

MU is also off 3.4%, putting it at $14.32, as the company prepares for its midday appearance at the JPMorgan Technology Forum. This is more of the same for a stock that's underperformed the broader S&P 500 Index (SPX) by 18.5 percentage points over the past three months, and hasn't closed atop its 10-week moving average since mid-October.

Nonetheless, Micron Technology, Inc. has been on the receiving end of bullish brokerage attention. In fact, 16 of 25 analysts rate the stock a "buy" or better. This could pave the way for future downgrades, potentially exacerbating selling pressure.

Finally, OLED is down 1.1% at $52.20, but has still come a long way since testing the $33 area in October. Not surprisingly, option traders have been upping the bullish ante at the ISE, CBOE, and PHLX. Specifically, Universal Display Corporation's 50-day call/put volume ratio sits at a top-heavy 7.06 -- and outstrips 93% of comparable readings taken in the past year.

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!