Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Aug 17, 2016 at 3:40 PM
Updated on Jul 9, 2020 at 1:42 PM
  • Earnings Preview
  • By the Numbers
Semiconductor stock Applied Materials, Inc. (NASDAQ:AMAT) is among the top broad-market standouts of 2016, according to recent relative-strength data from Schaeffer's Senior Quantitative Analyst Rocky White. The stock has almost doubled since its August 2015 lows, and touched a 14-year high of $27.75 earlier this week. What's more, while some red-hot semiconductor stocks could be ripe for a pullback, it looks like options buyers and analysts are betting on even higher highs for AMAT after tomorrow's earnings release.

On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMAT has racked up a 10-day call/put volume ratio of 9.08, indicating that traders have bought to open more than nine calls for every put during the past two weeks. This ratio is higher than 86% of all others from the past year, underscoring the healthier-than-usual appetite for bullish bets of late.

AMAT's short-term options remain attractively priced, too, from a historical volatility perspective. The equity's Schaeffer's Volatility Index (SVI) of 32% is lower than 75% of the past year's worth of readings. Meanwhile, the stock's Schaeffer's Volatility Scorecard (SVS) sits at a lofty 90, indicating AMAT has tended to make outsized moves on the charts during the past year, relative to what the options market has priced in -- an attractive argument for premium buyers.

However, the stock's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) is docked at just 0.27, indicating potential short-term, options-related resistance via overhead calls. In fact, the overhead 28 strike is home to peak call open interest in the soon-to-expire August series, with nearly 11,000 contracts in residence. The $28 region is also about four times' AMAT's 2008 lows, and represents a roughly 50% year-to-date gain for the shares.

Historically, Applied Materials, Inc. (NASDAQ:AMAT) has moved higher in the session after earnings in each of the past three quarters, jumping 13.8% after its mid-May earnings release. Ahead of tomorrow's event, RBC yesterday upped its price target to that key $28 level from $26, and 14 out of 17 analysts maintain "buy" or better ratings.

 
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Published on Sep 26, 2016 at 10:32 AM
Updated on Jul 9, 2020 at 1:41 PM
  • Stock Market News
  • Stocks On the Move
  • By the Numbers
Sarepta Therapeutics Inc (NASDAQ:SRPT) is fresh off a week for the ages. Spurred by a big win at the Food and Drug Administration (FDA) and a round of upbeat brokerage notes, the stock doubled in value last week. It's more of the same this morning, with the biotech shares 3.2% higher at $59.69, following a bullish write-up in Barron's.

Specifically, the financial magazine said there could be "considerably more upside" in SRPT, based on the sector's valuation metrics and the company's potential as a takeover target. In fact, Barron's said that if upcoming trials prove successful, "Sarepta could become one of the most lucrative biotech plays in the coming years."

From the looks of it, though, options traders have either been betting on -- or bracing against -- a potential downturn in the shares. The stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 1.58 -- just 12 percentage points from an annual peak. In other words, traders have been buying to open puts over calls at an accelerated clip in recent months.

Underscoring this put bias, SRPT's Schaeffer's put/call open interest ratio (SOIR) of 1.06 ranks in the 82nd annual percentile. This suggests open interest levels among options expiring in the next three months are very much tilted toward puts, on a relative basis.

As alluded to, some put buyers could actually be Sarepta shareholders bracing against a short-term downturn in the shares. After all, the biotech stock's 14-day Relative Strength Index (RSI) is approaching 80, putting it well into overbought territory.

Just how hot has Sarepta Therapeutics Inc (NASDAQ:SRPT) been lately? For one, the shares have more than tripled this quarter alone. For another, last Thursday, the stock touched a 14-year high of $61.60 -- and if "vanilla" option bears begin hitting the exits, a tailwind could lift SRPT to even greater heights.

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Published on Sep 29, 2016 at 9:35 AM
Updated on Jul 9, 2020 at 1:41 PM
  • By the Numbers
  • Stock Market News
Several notable stocks are swinging higher this morning in the wake of earnings. Among the post-earnings gainers are consulting firm Accenture Plc (NYSE:ACN), as well as snack makers ConAgra Foods Inc (NYSE:CAG) and PepsiCo, Inc. (NYSE:PEP). Let's take a closer look at these three stocks, and how Wall Street is reacting to the earnings data.

ACN has gained 4.1% to trade at $121.43 -- a fresh record high -- after the firm narrowly topped the consensus earnings estimate and reported a strong increase in quarterly revenue. In addition, the company boosted its dividend. This is a welcome development for option bulls. During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Accenture Plc traders have bought to open twice as many calls as puts. The corresponding call/put volume ratio of 2.00 sits just 13 percentage points from an annual peak.

CAG has tacked on 4.6% to hover near $45.11, boosted by an earnings beat. However, the shares are still trying to rebound after pulling back from a record high of $48.81, notched on July 1. Short sellers have been betting against a bounce in recent weeks. During the last two reporting periods, in fact, short interest on ConAgra Foods Inc spiked 33.6% -- though just 1% of the stock's total float is sold short.

Lastly, PEP is up 1.7% at $109.19, following better-than-forecast quarterly results, and an upwardly revised earnings outlook. In fact, the shares are quickly approaching their record high of $110.94, hit in mid-July. While options traders have been amassing PepsiCo, Inc. puts of late, the brokerage crowd has been singing the stock's praises. Specifically, 10 of 12 analysts rate the shares a "buy" or better, with not a single "sell" recommendation to be found.

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Published on Oct 14, 2016 at 11:44 AM
Updated on Jul 9, 2020 at 1:41 PM
  • Stock Market News
  • By the Numbers
  • Earnings Preview
It's been an eventful week for airline stocks, and that trend is continuing today with United Continental Holdings Inc (NYSE:UAL). Specifically, ahead of Monday night's earnings report, the airline ran into a computer glitch overnight that delayed at least 37 flights -- but has since been resolved.

The stock is largely shrugging off the fundamental setback, last seen 0.5% higher at $53.96. Longer term, UAL shares have been soaring since bottoming over the summer south of $38, up 44% relative to their late-June annual low of $37.41. What's more, the stock recently touched its 40-day moving average, which has proven a bullish signal in the past. Looking back three years, UAL has touched this trendline seven times, and in the ensuing five sessions, has averaged a gain of 3.4%.

ual daily october 14

Of course, Monday's earnings report could go a long way in determining where UAL goes from here. Historically, these quarterly numbers have produced mixed returns -- including a single-session drop of 10% following the airline's late-April report. This time around, the options market is pricing in a 5.4% swing in either direction for the day immediately after earnings.

From the looks of it, traders believe UAL will resolve to the upside. Over the past 20 sessions, options speculators have bought to open twice as many calls as puts at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This call bias is echoed by open interest levels within the front three-months' series. Specifically, UAL's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) registers at 0.43, with calls more than doubling puts.

The glass is half full elsewhere on the Street, too. For instance, eight of 11 analysts rate United Continental Holdings Inc (NYSE:UAL) a "buy" or better, with not a single "sell" opinion to be found. On top of that, short interest plummeted 18.3% during the last two reporting periods, and now accounts for a relatively slim 3.3% of the stock's outstanding float.

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Published on Oct 28, 2016 at 10:48 AM
Updated on Jul 9, 2020 at 1:40 PM
  • Stock Market News
  • By the Numbers
Chipotle Mexican Grill, Inc. (NYSE:CMG) is enlisting the help of investment banks and lawyers to defend itself against potential demands by Bill Ackman, multiple sources have reported. Just last month, the activist investor became the restaurant chain's second-largest investor, taking a sizable stake in the firm.

It's hard to blame Ackman for wanting to see changes at Chipotle. The stock has been absolutely abysmal over the long term, shedding over two-fifths of its value year-over-year, and hitting a three-year low of $362.82 on Wednesday. At last check, however, CMG was up 1.1% at $372.55.

Amid this technical tailspin, bearish options players have been piling on. Over the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CMG's 10-day put/call volume ratio has risen from 0.79 to 1.00 -- with long puts equaling calls. Even more telling of bearish options expectations is the stock's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR). At 2.27, this SOIR indicates near-the-money puts more than double calls in the November series.

It appears this skepticism extends beyond the options arena, too. For instance, 68% of covering analysts rate CMG a "hold" or worse. And while short interest has been declining of late, one-fifth of the stock's float remains dedicated to short interest. At the shares' average daily trading volume, it would take upwards of a week to cover these positions.

Finally, for those looking to place options bets on Chipotle Mexican Grill, Inc. (NYSE:CMG), now is a good time to purchase premium -- particularly on short-term strikes. The stock's Schaeffer's Volatility Index (SVI) of 29% ranks in the bottom quartile of its annual range, suggesting near-term volatility expectations are relatively muted at the moment. What's more, based on CMG's Schaeffer's Volatility Scorecard (SVS) of 79, the shares have tended to make bolder moves than the options market has priced in over the prior year.

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Published on Sep 7, 2016 at 11:18 AM
Updated on Jul 9, 2020 at 1:39 PM
  • By the Numbers
  • Stock Market News
As Tesla Motors Inc (NASDAQ:TSLA) continues to test the round $200 area, Wall Street is gearing up for Elon Musk to divulge details on the next generation of the company's self-driving technology, otherwise known as "Autopilot 2.0." The first iteration of the feature has been marred by controversy, but improvements are expected, according to multiple reports -- including better radar-signal processing. In advance of potential news, TSLA put options have been growing in popularity.

According to data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the electric automaker's 10-day put/call volume ratio has risen to 1.12 from 0.97 over the past two weeks. What's more, the current ratio ranks in the bearishly skewed 88th percentile of its annual range. Put simply, options traders have been scooping up puts over calls at an accelerated clip, historically speaking.

Underscoring this put-skew is TSLA's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 1.86. This reading suggests near-the-money put options in the September series nearly double calls. Understandably, one of the heaviest strikes in the front-month series is the September 200 put, with over 12,000 contracts in residence -- with data from the major exchanges indicating a mix of buy- and sell-to-open activity.

Options traders aren't the only ones skeptical of Tesla stock. For instance, 22.6% of its float is sold short, representing 9.1 days' worth of trading, at TSLA's typical levels. Plus, three-quarters of the analysts tracking the shares consider them a "hold" or worse.

Technically speaking, Tesla Motors Inc (NASDAQ:TSLA) has been a mixed bag. On the one hand, the stock rallied hard off of its early February lows -- nearly doubling in less than two months. On the other, TSLA shares have struggled since topping out near $270, pressured recently by some embarrassing headlines. At last check, the stock is down 0.6% at $201.60.

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Published on Oct 20, 2016 at 11:46 AM
Updated on Jul 9, 2020 at 1:38 PM
  • By the Numbers
  • Stock Market News
Travel stocks haven't received much love recently on Wall Street. According to our internal Sector Scorecard, the percentage of analyst "buy" ratings has decreased 5 percentage points year-over-year. Not to mention, the average Schaeffer's put/call open interest ratio (SOIR) registers at a put-tilted 1.13, while short interest accounts for 8.6% of the average stock's float under our "Leisure" umbrella. Today, opinions are once again flying on travel stocks, including Expedia Inc (NASDAQ:EXPE), Priceline Group Inc (NASDAQ:PCLN), and Tripadvisor Inc (NASDAQ:TRIP).

Overnight, Susquehanna started coverage on EXPE with a "positive" rating and a $160 price target -- in record-high territory -- while Pacific Crest upped its assessment to "overweight" from "sector weight." In fact, the latter called the stock the "best longer-term risk/reward in the space" (subscription required), citing the earnings potential of the firm's vacation rental business, HomeAway.

As alluded to, travel stocks in general haven't earned much respect, but this hasn't been the case for EXPE. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for instance, the stock has amassed a 50-day call/put volume ratio of 1.58 -- just 1 percentage point from an annual peak. Additionally, the shares have garnered 12 "buy" or better ratings, more than doubling its five "hold" or worse assessments.

Technically speaking, Expedia Inc is only about 7% higher in 2016, last seen up 0.4% at $125.19. However, relative to its early February low at $88.40, the leisure stock has surged 42%, and is poised for its highest closing price of the year.

PCLN got some love from Susquehanna, as well. Specifically, the brokerage firm initiated coverage with a "positive" rating and a $1,700 price target -- representing uncharted waters. The shares are failing to capitalize on the bullish note, down 0.3% at $1,465.07, but as recently as Oct. 5 they hit a record high of $1,501.79 -- and could rally more if past is prologue.

While analysts are largely in PCLN's bullish corner, options traders appear to be anything but hopeful. The travel stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.01 outstrips 80% of all readings taken in the last year. However, given Priceline Group Inc's strong technical backdrop, it's possible shareholders have been picking up puts to hedge against a surprise near-term drop.

Rounding things out, TRIP was initiated at Susquehanna with a "neutral" rating and a $55 price target -- a discount to current trading levels. At last check, the shares have shed 2.1% at $62.50 -- and have underperformed long-term, too, with a 2016 deficit of 24%.

In other words, the prevailing skepticism toward Tripadvisor Inc is well-deserved. For example, 16 of 17 analysts rate the travel stock a "hold" or worse, nearly 15% of its float is sold short, and its 10-day ISE/CBOE/PHLX put/call volume ratio of 1.55 ranks just 16 percentage points from a 12-month peak.

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Published on Dec 28, 2016 at 2:07 PM
Updated on Jul 9, 2020 at 1:38 PM
  • By the Numbers
  • Stock Market News
Apple Inc. (NASDAQ:AAPL) is off 0.3% this afternoon at $116.86, despite positive buzz on the fundamental and technical fronts. First off, CEO Tim Cook told CNBC "it's been a great holiday," adding that the company's new Airpod headphones are a "run away success." In addition, UBS called AAPL the "most underweight stock in the world."

Technically speaking, there are some encouraging signs from the stock. While the shares have struggled to overtake the $118 area in recent months, they remain relatively close to their annual high of $118.69, hit on Oct. 11. What's more, AAPL's 10- and 20-month moving averages are on the verge of making a bullish cross for the first time since mid-2014.

aapl monthly dec 28

There are plenty of options traders counting on an extended upside run for Apple shares, too. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.86 stands in the high 79th annual percentile, with long calls nearly doubling puts.

Outside of the options arena, positivity is high, while doubters have been on the run. Specifically, 26 of 32 analysts rate AAPL a "buy" or better. Plus, short interest plummeted almost 22% in the most recent reporting period, leaving less than 1% of the stock's float sold short.

For those looking to place short-term bets on AAPL -- whether bullish or bearish -- now's an excellent time to buy options premium. The stock's Schaeffer's Volatility Index (SVI) of 16% sits below 97% of all readings from the past year, hinting at muted volatility expectations in the front-month series. Not to mention, Apple Inc.'s (NASDAQ:AAPL) Schaeffer's Volatility Scorecard (SVS) is a sky-high 99, suggesting the stock has made outsized moves in the past year, relative to what the options market has priced in.

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Published on Dec 28, 2016 at 2:54 PM
Updated on Jul 9, 2020 at 1:37 PM
  • Stock Market News
  • By the Numbers
Accessories designer Coach Inc (NYSE:COH) is rallying on news that sector peer Kate Spade & Co (NYSE:KATE) is exploring a sale. At last check, COH stock was up 1.8% at $35.08. At the same time, however, pessimism is growing among options traders and analysts alike, with Morgan Stanley waxing pessimistic on the underperforming shares. Specifically, the brokerage firm dubbed Coach one of its stocks to sell in 2017.

Taking a step back, COH shares have struggled of late, with brick-and-mortar retailers in general grappling with the shift toward online shopping, as well as concerns over potential import taxes under the incoming Trump administration. As a result, the stock fell short of this bullish Thanksgiving week trend. Longer term, since turning over from their late-July highs, the shares have surrendered nearly one-fifth of their value. As such, Coach joins a number of retail names at or near oversold territory, as the equity settled Tuesday with a 14-day Relative Strength Index (RSI) of 33.

As alluded to, Wall Street hasn't been impressed with the stock. COH has racked up a 10-day put/call volume ratio of 2.05 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Not only does this ratio indicate long puts have doubled calls, it also ranks in the bearishly skewed 78th percentile of its 12-month range.

Echoing this, the stock sports a Schaeffer's put/call open interest ratio (SOIR) of 1.17, with put open interest outweighing call open interest among options in the front three-months' series. On top of that, this SOIR registers in the put-skewed 89th annual percentile. In terms of open interest, the largest accumulation by far resides at the deep out-of-the-money January 2017 25-strike put, with more than 9,000 contracts in residence.

Within the front-month series, options premium is relatively cheap right now. Specifically, COH's Schaeffer's Volatility Index (SVI) checks in at 25%, below 87% of all readings recorded in the past year. In other words, now is a great time to purchase short-term options on the stock, as muted volatility expectations are being priced in.

Outside of options land, sentiment is a more mixed picture. Despite Morgan Stanley's harsh note, the fact remains that two-thirds of analysts strongly recommend buying Coach Inc (NYSE:COH) shares. Meanwhile, short interest dropped by about 20% during the last two reporting periods, but at the stock's average trading rate, it would still take nearly four sessions to cover the remaining shares sold short.

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Published on Jan 11, 2017 at 12:14 PM
Updated on Jul 9, 2020 at 1:36 PM
  • Stock Market News
  • By the Numbers
Signet Jewelers Ltd. (NYSE:SIG) is breaking from history. Typically the best stock to own in the first quarter, SIG is getting trounced at midday -- down 3.4% at $84.52. The shares are sinking after the company saw same-store sales fall 4.6% in the holiday season, and forecast a 2%- to 2.5%-drop in comparable-store sales for 2017.

While today's bearish gap is a punch to the gut of shareholders, it's probably being well-received within the options crowd. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 7.20 SIG puts for every call in the last two weeks -- albeit on relatively light volume. The corresponding put/call volume ratio rests just 8 percentage points from a 12-month peak.

Short sellers should be in good shape, too. Over 16% of SIG's float is sold short, which would take more than seven sessions to cover, at its average daily volumes. However, it appears some shorts missed the boat, as short interest plunged 24.2% over the past two reporting periods.

Technically speaking, SIG is at a critical juncture. The stock recently breached the 23.6% Fibonacci retracement of its January 2016 highs and September 2016 lows, suggesting more downside could be just around the corner.

sig weekly jan 11b

Perhaps Signet Jewelers Ltd.'s (NYSE:SIG) best hopes of a quick rebound rest on its 320-week moving average, which roughly corresponds with the round $80 level. The long-term trendline was supportive in late 2016 and, prior to that, in 2011. On the other hand, a breach of the moving average could portend a run to new multi-year lows.

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Published on Apr 16, 2015 at 10:51 AM
Updated on Jul 9, 2020 at 1:34 PM
  • General

U.S. stocks are mostly lower this morning, as traders have one eye trained on Greece and another on the earnings carousel. Among the equities making an early splash on the Street are solar energy issue SunPower Corporation (NASDAQ:SPWR), drugmaker Pacira Pharmaceuticals Inc (NASDAQ:PCRX), and big-cap conglomerate Procter & Gamble Co (NYSE:PG).

  • SPWR jumped out of the gate, after the firm said it's partnering with Apple Inc. (NASDAQ:AAPL) to build a pair of solar power projects in China, expected to be completed in the fourth quarter. The stock rallied as high as $34.75 before cooling off, and was last seen with a 1% lead at $33.72. Even before today, SPWR was a broad-market standout, outperforming the S&P 500 Index (SPX) by nearly 35 percentage points during the past three months. Still, short interest accounts for 11.3% of SunPower Corporation's float, and would take nearly a week to buy back, at the equity's average daily trading volume -- ample fuel for a short squeeze to propel the shares even higher. In the options pit, meanwhile, SPWR calls are trading at four times the average morning pace, with potential buy-to-open action detected at the weekly 5/1 31-strike call.

  • PCRX, on the other hand, has surrendered 7.2% to sit at $85.71, after the firm was slapped with a subpoena from the Department of Justice. Specifically, the feds are requesting documents related to the marketing practices of Exparel, Pacira Pharmaceuticals Inc's post-surgery pain drug. After toying with all-time highs north of $120 in February, PCRX suffered a dramatic FDA-induced bear gap, and has spent the subsequent weeks stair-stepping lower. Meanwhile, PCRX options are crossing at 45 times the average intraday pace, and it looks like some bears are buying to open the April 85 put -- most active on the day.

  • PG is flirting with modest gains at $83.53, amid reports that its beauty business could fetch bids next week. From a longer-term perspective, PG remains 8.3% lower year-to-date, and is struggling to surmount its 10-week moving average, which has rejected rebound attempts since late January. Short-term option players are more put-heavy than usual ahead of Procter & Gamble Co's earnings release next Thursday, as the security's Schaeffer's put/call open interest ratio (SOIR) of 1.68 stands higher than 93% of all other readings from the past year. It's more of the same today, with PG puts trading at twice the typical morning rate, and potential buy-to-open action spotted at the April 85 put.
Published on Apr 16, 2015 at 1:47 PM
Updated on Jul 9, 2020 at 1:34 PM
  • General

Among the stocks gearing up to report earnings are chipmaker Advanced Micro Devices, Inc. (NASDAQ:AMD), blue chip General Electric Company (NYSE:GE), and data storage provider Seagate Technology PLC (NASDAQ:STX). Below, we'll gauge the pre-earnings temperature of AMD, GE, and STX.

  • AMD has spent the past month range-bound, with the shares fluctuating between support near $2.60 and resistance in the $2.80 neighborhood. Today, the shares are 4.3% higher to linger near $2.82 ahead of tonight's trip to the earnings confessional. Heading into today's session, traders have been betting bearishly on Advanced Micro Devices, Inc., as its 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.86 reads in the 94th percentile of its annual range. Additionally, short interest increased by nearly 11% over the last reporting period, and now accounts for 16.3% of AMD's available float. Traders banking on post-earnings downside for the stock have history on their side -- in the session immediately following its last eight earnings reports, AMD has shed an average of 4.1%, including a 16.2% plummet in July. Speculators are paying relatively attractive prices for their short-term bets on AMD, as its Schaeffer's Volatility Index (SVI) of 64% is higher than 42% of all equivalent readings from the past year.

  • On the other hand, GE has been trending upwards, with the shares up 8.1% year-to-date to hit $27.32. The stock's 2015 lead is thanks to an April 10 bull gap to six-year highs, after the firm announced it will sell the bulk of its real estate division to Blackstone Group LP (NYSE:BX) while initiating a $50 billion share repurchase program. Accordingly, options traders have been picking up GE calls over puts at a rapid-fire clip ahead of tomorrow morning's earnings release, as General Electric Company's 10-day ISE/CBOE/PHLX call/put volume ratio of 4.24 sits in the 79th percentile of its annual range. What's more, GE's Schaeffer's put/call open interest ratio (SOIR) of 0.53 is the lowest such reading taken over the past year, showing that short-term traders have never been this call-skewed on the stock. Meanwhile, in the session immediately following its last eight earnings reports, GE has gained an average of 0.8%. Near-term options on the equity are available for historically fair prices, as its SVI of 19% ranks in the 49th percentile of its annual range.

  • J.P. Morgan Securities initiated coverage on STX this morning with a "neutral" rating and a price target of $57 -- just a stone's throw from the stock's current perch of $55.85. Technically speaking, the shares of Seagate Technology PLC are down 1.4% ahead of earnings tomorrow morning, and have fallen 19.5% from their Dec. 23 all-time high of $69.40. In light of this negative price action, puts have been prominent in the options pits, as STX's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.76 ranks higher than 76% of all similar readings from the last 12 months. Elsewhere, in the session immediately following its last eight earnings reports, STX has lost an average of 2.4%, with just two of those sessions yielding positive outcomes. Near-term options on the security are available for historically middling prices, as its SVI of 33% ranks in the 53rd percentile of its annual range.

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