U.S. stocks are mixed this morning, with traders taking a tentative approach ahead of a holiday-shortened week ahead. Among specific names on the move today are retail stock Destination Maternity Corp (NASDAQ:DEST), financial firm Bank of America Corp (NYSE:BAC), and organic foods manufacturer Hain Celestial Group Inc (NASDAQ:HAIN). Here's a quick look at what's moving shares of DEST, BAC, and HAIN.

Destination Maternity Slides as Merger Partner Swings to Loss

Destination Maternity stock is down 28% to trade at $3.35, after the company's merger partner, France-based Orchestra Prémaman, swung to a fiscal-year net loss. The two companies announced their merger in December. Today's drop for DEST stock reverses a modest recovery from April's eight-year low of $3.18, and continues a longer-term downtrend that's been in place since last November's peak at $8.42.

Amid the equity's short-lived rally into early June, DEST shorts largely exited their bearish bets; short interest decreased by nearly 28% during the reporting period ended June 1. Due to today's big sell-off, DEST stock is currently short-sale restricted.

Buffett Buy-In Sends Bank of America Higher

Bank of America stock is up 1% to trade at $24.59, after Warren Buffett's Berkshire Hathaway confirmed it will exercise warrants to acquire 700 million common shares of BAC, becoming the largest shareholder of the bank giant in the process. Berkshire will hold an ownership stake of about 7% in BAC, which earlier this week received Fed approval for a dividend hike.

BAC is now up roughly 88% year-over-year, but short sellers are targeting the Charlotte-based bank. Short interest has increased by 33.7% during the past two reporting periods, and the current accumulation of 131 million shares sold short is the most since mid-December 2016.  

Activist Stake Sends Hain Celestial Stock Higher

Hain Celestial stock is up 8.5% to trade at $38.96, after activist investor Engaged Capital disclosed a 9.9% stake in the organic food stock, and said it will work with the board to create shareholder value. Today's bull gap is a change of pace for struggling HAIN stock, which fell to a four-year low of $31.01 as recently as June 23 -- but is now trading above its year-to-date breakeven level for the first time since early February.

Options traders have loaded up on HAIN puts in response to the bleak price action this year. HAIN's Schaeffer's put/call open interest ratio (SOIR) of 0.77 sits in the 96^th percentile of its annual range, suggesting short-term options players have rarely been more put-skewed during the past 12 months. 

Options traders have been actively targeting Costco Wholesale Corporation (NASDAQ:COST) of late. Through Wednesday's close, COST stock had seen some of highest total options volume over the previous two-week time frame, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, with 433,560 contracts traded.

This theme is echoed in data from Trade-Alert, which shows COST's single-session options volume hitting an annual high of 185,483 contracts on Friday, June 16, with 98,844 calls and 86,639 puts traded. Plus, Costco call and put open interest are docked at the top of their respective 12-month ranges, with 176,618 calls and 217,898 puts currently outstanding.

Drilling down, peak open interest is found at the weekly 6/30 160-strike put, where 11,115 contracts reside. The bulk of these positions were initiated two weeks ago, when one trader combined these options with the weekly 6/30 165-strike puts to initiate a put ratio spread. The best-case scenario for this options trader is for COST to finish right at $160 at tonight's close -- site of the sold strike -- with the stock last seen trading at $159.39.

On the call side, peak open interest is located at the July 170 strike, with 10,358 contracts outstanding. Data from the major options exchanges confirms significant buy-to-open activity here, meaning options traders are betting on Costco shares to settle north of $170 by the close on Friday, July 21 -- when front-month options expire.

The last time COST saw the north side of $170 was on June 16, shortly before the retail stock gapped lower on news that Amazon is buying Whole Foods. Nevertheless, the shares seem to have stabilized after breaching their lower Bollinger Band -- a "buy" signal over the past year -- and appear to be bouncing from their 200-day moving average, a trendline that kept a lid on Costco late last year. 

Plus, Costco stock is entering a historically bullish period. Per data from White, COST has been one of the best stocks to own in the third quarter, averaging a gain of 6.2% over the past 10 years, and ending higher 80% of the time. In the second half, the security has also tended to outperform, averaging an 11.4% gain and a 90% win rate!

Analysts are weighing in on iPhone parent Apple Inc. (NASDAQ:AAPL), airline name Delta Air Lines, Inc. (NYSE:DAL), and retail stock Coach Inc (NYSE:COH). Here's a quick roundup of today's bullish brokerage notes on shares of AAPL, DAL, and COH.

Deutsche Bank Boosts Apple Stock Price Target

Deutsche Bank raised its price target on AAPL to $132 from $130. Nevertheless, this still represents a steep discount to last night's close at $145.06, as the brokerage firm warned that expectations are too high heading into the next iPhone cycle. While Apple shares are trading down 0.3% at $144.55 this morning, they remain roughly 25% higher on the year, and are not far from their May 15 record high of $156.65.

Regardless of whether you're bullish or bearish on Apple, now's a good time to bet on the stock's near-term trajectory with options. The security's Schaeffer's Volatility Index (SVI) of 17% ranks in the 18th annual percentile, meaning low volatility expectations are currently priced into short-term AAPL options.

DAL Stock Receives Bullish Brokerage Note Ahead of Earnings

Ahead of Wednesday morning's earnings report, Delta Air Lines saw its price target raised to $54 from $52 at Imperial Capital, though this is still below Monday's settlement at $54.81. The stock has been rallying hard since taking a sharp bounce off its 200-day moving average in mid-April, up more than 25% to trade at $54.85 -- and fresh off yesterday's record high of $55.75.

DAL's surge has coincided with a sharp rise in short interest -- the bearish bets increased 26.5% in the most recent reporting period -- which speaks volumes to its underlying strength. This also points to ample sideline cash available to help boost the Delta Air Lines stock, should it continue to outperform.

MKM Partners Bullish on Coach Shares

Coach stock is down 0.2% at $47.57, even after MKM Partners initiated coverage with a "buy" recommendation. The luxury goods stock has stayed on a steady incline this year, using its 40-day moving average as support. Up more than 35% year-to-date, COH hit a two-year high of $47.87 July 7. COH's Schaeffer's Volatility Index (SVI) of 21% is in just the 6th percentile of its annual range, pointing to attractive short-term options premiums, from a historical volatility standpoint. Moreover, 16 of 21 analysts rate the stock a "buy" or better. 

Analysts are weighing in on Snapchat parent Snap Inc (NYSE:SNAP), cybersecurity stock Barracuda Networks Inc (NYSE:CUDA), and luxury retailer Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's bearish brokerage notes on shares of SNAP, CUDA, and KORS. 

Lead Underwriter: 'We Have Been Wrong' About SNAP

Morgan Stanley -- a lead underwriter on Snap's initial public offering (IPO) earlier this year -- downgraded the stock to "equal weight" from "overweight," and slashed its price target by nearly 43% to $16. "We have been wrong about SNAP's ability to innovate and improve its ad product this year," said the analysts, who also noted escalating competition from Facebook-owned Instagram.

SNAP stock on Monday closed below its IPO price of $17 for the first time since going public back in March, settling at $16.99. In early trading, the shares are steepening their slide into record-low territory, down 4.6% at $16.21 -- earlier bottoming at $16. The negative price action could encourage a fresh batch of bearish traders to Snap's table. Short interest surged 81.5% in the two most recent reporting periods, but accounts for just 6% of the stock's available float.

Barracuda Networks Issues Lackluster Guidance

Barracuda Networks reported in-line per-share earnings and reported quarterly revenue above forecasts. However, the cybersecurity company's current-quarter guidance fell short of estimates, sending CUDA stock down 5% to trade at $22.81. Adding salt to the proverbial wounds, Piper Jaffray trimmed its price target on Barracuda stock to $28 from $29. CUDA is now trading back below recent resistance in the $23.00-$23.50 region.

CUDA options traders were seemingly bracing for a post-earnings pullback. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio of 0.72 ranks in the 72nd annual percentile, meaning puts have been bought to open relative to calls at a faster-than-usual clip.

KORS Stock Started at 'Sell'

While MKM Partners initiated coverage of fellow luxury goods producer Coach stock with a "buy" endorsement, the brokerage firm started Michael Kors stock with an ice-cold "sell" rating. KORS stock is down 4.4% at $34.30, and has racked up a year-to-date loss of 20%, with recent rebound attempts capped at its 80-day moving average.

Not surprisingly, of the 15 analysts following KORS stock, 14 carry a tepid "hold" rating. Meanwhile, short-term options traders are more put-heavy than usual, as Michael Kors stock sports a Schaeffer's put/call open interest ratio (SOIR) of 1.42 -- higher than 86% of all others from the past year.

U.S. stocks are mixed this morning, as the energy sector drags down broader markets. Among specific stocks on the move today are a trio of biotechs: Amicus Therapeutics, Inc. (NASDAQ:FOLD), Ocular Therapeutix Inc (NASDAQ:OCUL), and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA). Here's a quick look at what's moving shares of FOLD, OCUL, and ARNA.

FDA Clearance Sends Amicus Stock To New Highs

Amicus Therapeutics stock is up 25% to trade at $12.94 -- and earlier hit a new 22-month high of $13.09 -- after scoring Food and Drug Administration (FDA) clearance to submit a new drug application (NDA) for its Fabry disease drug. It's been a banner year for FOLD stock, which has more than doubled from its Dec. 30 close at $4.97. 

Despite the strong price action, there are still plenty of bears betting against Amicus stock. Short interest accounts for more than a quarter of FOLD's total available float -- representing more than 18 times the equity's average daily trading volume.

OCUL's NDA Amendment Reverses Some Recent Losses

Ocular Therapeutix stock is up 22% to trade at $7.93, after the company amended the NDA for its DEXTENZA eye drug and requested an extension on the application's target action date. The amendment addresses a manufacturing equipment change that OCUL says addresses "outstanding issues" flagged by the FDA. Today's pop comes on the heels of a rough stretch for OCUL stock, which shed nearly one-third of its value over the previous two sessions.

In light of the recently wild price action, it's getting very expensive to bet on Ocular stock's short-term direction. Specifically, OCUL's Schaeffer's Volatility Index (SVI) of 298% arrives in the 100th percentile of its annual range, indicating that front-month options are pricing in extremely high volatility expectations.

Upbeat Trial Data Sparks Bull Gap for Arena Stock

Arena Pharmaceuticals stock is up a whopping 49% to trade at $27.40, fresh off a new annual high of $27.78, after its pulmonary arterial hypertension drug ralinepag met the primary goal of a mid-stage study. ARNA spent most of this year range-bound below resistance at its 50-week moving average, but its positive momentum has accelerated since the stock closed above this trendline in late June. Thanks to today's bull gap, the shares are now up 93% year-to-date.

Arena shares are quite likely benefiting from a short squeeze today. Short interest represents more than 26% of the equity's total available float, and it would take nearly a week to cover all of these bearish bets at ARNA's average daily trading volume.

Darden Restaurants, Inc. (NYSE:DRI) has been a steady climber on the charts, sporting a year-to-date gain of roughly 24%. In fact, an impressive earnings report in late June sent the shares to record-high territory. More recently, DRI pulled back to its historically supportive 40-day moving average, suggesting it could be a good time to get behind the equity for its next leg higher.

Most analysts remain skeptical of the stock, though. For example, 12 of 18 brokerage firms rate DRI a "hold" or "sell." It would seem the outperformer is overdue for bullish analyst attention, which could create tailwinds.

Plus, short-term options traders are extremely put-skewed. This is according to DRI's Schaeffer's put/call open interest ratio (SOIR) of 3.32, which ranks just 4 percentage points from a 12-month high. An unwinding of these positions could also help Darden Restaurants climb the charts.

It's also a good time to target near-term options on DRI. This is according to the stock's Schaeffer's Volatility Index (SVI) of 21%, which lands in the low 6th annual percentile. This indicates low volatility expectations are priced into short-term options. Plus, our recommended call option has a leverage ratio of 8.5, and will double in value on an 11% gain in the underlying shares.

Subscribers to Schaeffer's Weekend Trader Series options recommendation service received this DRI commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

The PowerShares QQQ Trust (QQQ) skidded lower to start the month of July, deepening a pullback from its June 9 intraday peak of $143.90. And while QQQ's decline in the early innings of last week was rapid, it certainly didn't approach "official correction" territory -- the fund won't be 10% off its peak intraday or closing highs unless it drops below $130 -- and the shares appeared to rebound from their 80-day moving average late in the week. Nevertheless, the cost of "crash protection" on QQQ vaulted to new year-to-date highs.

We're talking here about the 10-day moving average of QQQ's put/call skew on 10% out-of-the-money options. As displayed by the red line on the accompanying chart, this metric -- which compares implied volatility (IV) readings for out-of-the-money puts against that of their call counterparts -- jumped as high as 1.789 last week. This was the loftiest such reading since Nov. 15, 2016, when the calculation was still figuring in pre-election hysteria levels.

This reading is based on a fairly robust sample, too, with QQQ options attracting plenty of attention so far this summer. As of Friday morning, put open interest on QQQ stood at 5.2 million contracts -- in the 99th percentile of its annual range, per Trade-Alert, and not too far removed from the June 30 annual high of 5.5 million. QQQ call options are near a similar popularity peak in their own right, with open interest of 2.3 million contracts registering in the 98th annual percentile.

As far as the actionable trading signals that can be derived from this extreme divergence in QQQ put and call IV levels, we'd note that this isn't necessarily a screaming "sell premium" indicator. In fact, both Schaeffer's Volatility Index (SVI) -- a measure of front-month IVs -- and a rolling 30-day at-the-money IV skew reading for QQQ are planted squarely near the middle of their respective annual ranges. What's more, as of midday on Friday, 30-day at-the-money IV on QQQ was at 16.0% -- in the high 91st percentile of its annual range, but a modest discount to the fund's 30-day historical volatility of 17.4%.

So the recent peak in QQQ's 10-day, 10% out-of-the-money put/call skew may be most useful right now as a sentiment indicator -- one that reveals traders are bidding up the odds of a QQQ crash over a continued rally to record highs by the widest margin in eight months, even as the shares remain (by any objective account) on strong technical footing above their 80-day.

Subscribers to Bernie Schaeffer's Chart of the Week received this commentary on Sunday, July 9.

The iShares U.S. Real Estate ETF (IYR) has had a choppy 2017. After hitting a year-to-date peak of $81.94 on June 26, the exchange-traded fund (ETF) pulled back to a trendline that's connected a series of higher lows since December, and were last seen trading at $77.81. This area also coincides with a 38.2% Fibonacci retracement of IYR's 2016 rally -- while just below sits the fund's year-to-date breakeven level of $76.94 -- and could help support the shares. 

Also working in IYR's favor is the fund's historically bullish performance during the month of July. According to data from Schaeffer's Quantitative Analyst Chris Prybal, IYR has averaged a July gain of 2.3% since its inception -- second only to April in terms of its best monthly showing. Plus, data from Schaeffer's Senior Quantitative Analyst Rocky White shows IYR has been one of the best ETFs to own in July, averaging a 2.5% monthly return over the past decade, and boasting an 80% win rate.

In fact, real estate names dominate the list of best stocks to own in July, with IYR component and real estate investment trust (REIT) Simon Property Group Inc (NYSE:SPG) near the top of the pack. In the last 10 years, SPG shares have averaged a monthly gain of 3.7%, and have turned in a positive performance 90% of the time. Nevertheless, SPG shares have been struggling in 2017, down 5.2% since the start of the month, and off 13.7% year-to-date to trade at $153.30.

Those looking to trade options on the real estate sector in the near term could consider buying premium on IYR or selling it on SPG. Specifically, IYR's Schaeffer's Volatility Index (SVI) of 12% ranks in the 24th percentile of its annual range, meaning low volatility expectations are being priced into the fund's short-term options -- a potential boon to options buyers. Conversely, SPG's 30-day at-the-money implied volatility of 23.4% ranks just 10 percentage points from a 52-week peak, pointing to relatively expensive premiums on the stock's near-term options.

Shares of payments processor Square Inc (NYSE:SQ) are rallying today despite the absence of any specific news. At last check, Square stock was up 5% at $25.19, which puts it on pace for an all-time closing high; the shares' record intraday peak is $24.97, touched back on June 9. Year-to-date, SQ stock has added over 83%, and today's options trading activity suggests many investors expect more upside. 

SQ Call Volume Accelerated

So far today, Square call options are trading at six times the expected intraday pace, putting volume on pace to end in the 99th annual percentile. By the numbers, roughly 9,400 calls have traded, compared to fewer than 900 puts. Much of the activity has centered around the December 23 call, where data points to buy-to-open activity. If this is indeed the case, options traders are betting on SQ stock extending its lead above $23 through December options expiration. 

The August 25 call is also popular today, and likely seeing buy-to-open action, as well. In the front-month July series, which expires at the close on Friday, July 21, the 24 and 25 calls are seeing the most volume. And on the put side, the July 24 contract leads the way, but traders could be betting on a short-term floor by selling to open the option. 

Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) reveals call buying has been the more popular strategy over the past two weeks, with long calls nearly doubling long puts. However, the stock's 10-day put/call volume ratio across these exchanges of 0.51 ranks in the 88th annual percentile, so put buying, relative to call buying, has actually been more popular than normal. 

Square Stock Defies Rising Short Interest

Outside the options pits, a number of investors have displayed growing skepticism toward SQ shares. That is, short interest has been rising consistently on Square since mid-February, including a huge 25% surge during the last two reporting periods. 

There are two things to consider with this information. First off, it's likely many of these bears are facing steep losses with their short positions, since Square stock is up 73.5% since mid-February. As such, an extended push to the upside from SQ shares could result in these short sellers throwing in the towel, which would only fuel additional gains. On the other hand, the growing short interest levels also suggests some of the call buying on Square could be the result of these shorts using options to hedge their positions. 

Analysts Could Also Spark More Gains for SQ

On top of all that, Square could be in store for more bullish analyst attention. Ten of the 23 brokerage firms with coverage on the equity maintain tepid "hold" recommendations, and the shares recently overtook their average 12-month price target of $22.52. As such, it wouldn't be surprising to see upgrades and/or price-target increases come through in the near term. 

Stocks are trading higher, as oil prices take aim at a seventh straight daily win. Not all of the day's action is to the upside, though, with gun makers American Outdoor Brands Corp (NASDAQ:AOBC) and Sturm Ruger & Company Inc (NYSE:RGR), as well as meal delivery service Blue Apron Holdings Inc (NYSE:APRN) all trading notably lower. Here's a quick look at what's pressuring shares of AOBC, RGR, and APRN.

AOBC Stock Slides on Weak Forecast

American Outdoor Brands shares have are down 5% to trade at $22.69, after the Smith & Wesson maker's dismal current-quarter forecast overshadows a fiscal fourth-quarter earnings beat. And while Craig-Hallum raised its price target on AOBC shares to $23 from $19, Lake Street Capital Markets maintained its "hold" rating and $17 price target, citing expectations "the industry environment will remain difficult for at least two more quarters."

Today's sharp sell-off puts a halt to AOBC's rally off its April lows near $18.40 -- a move that coincided with a steady decline in short interest. But while short interest is down 30% from the April 1 reporting period, there are still 11.2 million American Outdoor Brands shares sold short, or 16.8% of the stock's available float.

RGR Stock Gets Hit By Sector Headwinds

AOBC's dreary outlook is weighing on sector peer Sturm Ruger, with the shares down 6.8% at $62.80. Though RGR is still maintaining an 19.2% year-to-date lead, it's broken below its 30-day moving average -- a trendline that's ushered the shares higher since March, and appeared to be emerging as a layer of support earlier this week.

After being heavily targeted by short sellers between November and April, RGR stock has seen these bearish bets decline by 26% in the past three months. Nevertheless, more than one-quarter of Sturm Ruger's float remains dedicated to short interest, or 22.4 times the equity's average pace of trading. 

APRN Stock Sinks Into Single Digits

It's been a tough week for Wall Street newcomer Blue Apron, which began trading publicly just yesterday. The company slashed the range of its initial public offering (IPO) on Wednesday, and closed right at their $10 IPO price on Thursday, after surging all the way up to $11. Today, APRN shares have slid into single-digit territory, last seen down 6% at $9.48, after earlier falling as low as $9.42.

While it's been a rather bumpy June for the U.S. stock market, the Dow Jones Industrial Average (DJIA) is on pace for its longest quarterly win streak in two decades. What's more, while the Dow itself could outperform after the July 4 holiday, five blue-chip stocks could be flashing "buy" right now: iPhone maker Apple Inc (NASDAQ:AAPL), credit card issuer Visa Inc (NYSE:V), home improvement retailer Home Depot Inc (NYSE:HD), consumer goods giant Procter & Gamble Co (NYSE:PG), and insurance stock Travelers Companies (NYSE:TRV). Further, one of those stocks has been the best to own in the second half of the year, looking back over the last decade. Below, we'll take a look at AAPL, V, HD, PG, and TRV, and dissect which blue chips offer the best bargains for short-term options traders.

Dow After Independence Day

Over the last 10 years, the Dow has been stronger than usual in the three sessions after July 4, according to data from Schaeffer's Senior Quantitative Analyst Rocky White. Specifically, the Dow has averaged a three-day return of 0.23% after the holiday, compared to an anytime average three-day return of just 0.04%. However, the Dow's win rate after July 4 has been just 40% -- smaller than its anytime three-day win rate in the past decade.

It's also encouraging that the Dow Jones Industrial Average is in the black year-to-date (YTD). In the past 50 years, the Dow has been higher YTD at the July 4 marker 30 times. In those years, the DJI averaged a three-day return of 0.16% after Independence Day, and was positive 57% of the time. In the years where the Dow was in the red YTD on July 4, it averaged a loss of 0.21% in the subsequent three sessions, and was higher just 35% of the time.

AAPL, V Stocks Could Heat Up Soon

Apple is just one of the so-called FAANG stocks that tend to heat up in the dog days of summer. AAPL stock has been among the best to own in July, going back 10 years. Further, AAPL has averaged a third-quarter gain of 9.93%, with a win rate of 80%. At last check, the shares were 0.4% higher at $144.31, after finding support in the $142 area, which represents a 23.6% Fibonacci retracement of the stock's rally from mid-2016 to its May 15 record high of $156.65.

Of all the blue chips, AAPL may boast the most attractive options set-up. The stock sports a Schaeffer's Volatility Index (SVI) of 20%, which is higher than just 26% of all other readings from the past year, suggesting Apple's short-term options are attractively priced, from a historical volatility standpoint. Plus, AAPL's Schaeffer's Volatility Scorecard (SVS) of 99 indicates the stock has handily exceeded options traders' volatility expectations during the past year.

Visa is also a historical standout in the third quarter. Going by win rate, V stock ranks No. 3 of all S&P 500 Index (SPX) components, ending the third quarter in the black 89% of the time in the past 10 years. On average, Visa has gained 2.54% over the third quarter. More recently, V stock has rallied roughly 21% in 2017, touching a record high of $96.60 earlier this month. The equity's 40-day moving average has emerged as support on pullbacks, and has ascended into the $94 region. Visa stock was last seen flat at $94.42.

HD, PG, TRV Stocks Outperform in 2H

Over the past 10 years, Home Depot has ended the second half of the year in positive territory 80% of the time, averaging a gain of 10.68%. HD stock has surged more than 14% YTD, but has pulled back since notching a record high of $160.86 in mid-May. However, Home Depot shares are now testing support at their 80-day moving average. After HD stock's last seven pullbacks to this trendline, the shares went on to rebound 2.74%, on average, over the next month, and were positive 67% of the time, according to White. At last check, Home Depot stock was 0.8% higher at $153.40.

Traders looking to roll the dice on another boost for HD can pick up short-term options at a relative bargain. The stock's SVI of 16% is below 76% of all other readings from the past 12 months, while its SVS of 79 suggests Home Depot stock has made bigger-than-expected moves on the charts during the past year, relative to what the options market priced in. 

Procter & Gamble stock has rallied from July 1 to Dec. 31 in nine of the past 10 years, averaging a gain of 8.58% over this time frame. PG has soared 34% since its mid-2015 bottom, marking a series of higher highs and lows, with its 320-day moving average emerging as support. The shares peaked at $92 in mid-March, but have since taken a breather, last seen 0.2% higher at $87.16. 

Finally, Travelers stock has been the best to own in the second half, looking back a decade. The blue chip is the only S&P 500 stock to boast a 100% win rate during this time frame, averaging a healthy gain of 9.86%. TRV stock has been in a channel of higher highs and lows since 2011, and quietly touched a record peak of $129.60 on June 16. At last check, Travelers shares were fractionally lower at $126.14.

Activision Blizzard, Inc (NASDAQ:ATVI) stock is up nearly 60% year-to-date, and last week reached a new record high of $61.57, but has since pulled back amid the broader tech stock swoon.  However, ATVI stock has an excellent track record after tests of its 40-day moving average, and near-term options traders betting on a bounce for Activision shares can do so at a relative discount. 

ATVI stock is now within one standard deviation of its 40-day moving average -- a historical "buy" signal. According to Schaeffer's Senior Quantitative Analyst Rocky White, after ATVI's last 12 pullbacks to its 40-day moving average, the stock posted an average one-week return of 2.01%, and was higher 67% of the time. Extending this data out to on month, the average post-signal return is 3.48%, and positive 73% of the time. 

Despite Activision's long-term rally, the stock boasts a Schaeffer's put/call open interest ratio (SOIR) of 1.20, ranking in the 77th percentile of its annual range. This indicates near-term options traders are much more put-heavy than usual right now. However, peak open interest at the July 57.50 put could act as an added layer of options-related support for ATVI stock in the near term, with nearly 15,000 contracts outstanding.

Meanwhile, short-term option prices for ATVI are currently very attractive. This is according to ATVI's Schaeffer's Volatility Index (SVI) of 28%, which stands higher than just 21% of all other readings for the year. In addition, its Schaeffer's Volatility Scorecard (SVS) sits at a lofty 96, implying that Activision Blizzard stock has exceeded options traders' volatility expectations during the past year.