Epizyme Inc (NASDAQ:EPZM) is among the leading advancers on the Nasdaq -- up 31% at $27.32, and lingering near levels not seen since early November. In addition to the day's bullish broad-market backdrop, the stock is getting a boost from some upbeat drug data, as well. Specifically, the company said early stage results from its lymphatic cancer drug, tazemetostat, showed "meaningful activity" in participants. The positive price action is most likely being cheered in the options pits, where call buying has been popular in recent months.

Drilling down, while volume has been relatively light on EPZM, activity has definitively been skewed toward the call side. Specifically, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 12.67 calls for each put over the past 50 sessions. What's more, the ratio ranks in the 72nd percentile of its annual range.

Echoing this is EPZM's Schaeffer's put/call open interest ratio (SOIR) of 0.39, which sits lower than 78% of all similar readings taken in the past year. Simply stated, short-term speculators are more call-skewed than usual.

Outside of the options pits, traders have taken a more skeptical route. Short interest jumped 15.5% in the two latest reporting periods, and now accounts for nearly 17% of the stock's available float -- or 17.3 times the average daily trading volume. In light of this, it's possible some of the recent call buying, particularly at out-of-the-money (OOTM) strikes, could be a result of short sellers hedging against any upside. Today, call buyers have turned their attention to the OOTM July 30 strike -- either betting on or bracing against the shares toppling the round-number mark over the next four weeks.

Heading into today's session, Epizyme Inc (NASDAQ:EPZM) was up 10% year-to-date. Thanks to today's pop, the shares are now sporting a 45% 2015 lead -- and are easily on pace to close north of their 200-day moving average for just the second time since last October.

Father's Day is this Sunday -- you're welcome for the reminder. And since you forgot that, I'm guessing you haven't picked up a gift for your old man yet. That's alright, though, because I haven't either. So let's look at a few places dad might enjoy, and figure out where we're going to shop based on the stock's performance. Chances are, we'll just grab a gift card. 

Of course, we have to start with Lowe's Companies, Inc. (NYSE:LOW), because what says "I love you dad!" more than a new power drill or an 80-foot ladder? However, LOW is off 0.1% today at $70.10, and has been in a sideways trend since its late-May bear gap. Plus, the shares are only 1.9% higher year-to-date. Not horrible, but dad deserves better. 

Oh, how about Home Depot Inc (NYSE:HD)? We may have something here. The stock -- unlike the broader Dow -- is up 1% today at $112.92, and is now up 7.6% in 2015. However, HD's 10-week moving average -- a long-time level of support -- has been acting as resistance since mid-April, pressuring the shares lower. Plus, the equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio comes in at 1.26 -- only 12 percentage points from an annual high, meaning calls have been bought to open over puts at a faster-than-usual clip. HD could see additional headwinds if these bulls change their behavior. 

Let's check over at Men's Wearhouse Inc (NYSE:MW). Dad would look just ​wonderful​ in one of these suits (probably black, with a navy blue tie). Even better, the stock has added 0.8% today to trade at $64.64, and is fresh off an all-time high of $64.73! I think we may have found a winner. Especially when you consider that the 14.6% of MW's float sold short represents over 18 sessions' worth of trading, at the stock's typical daily volumes. The shares could go even higher if bears throw in the towel. 

But that's assuming you make the correct choice, which few of us actually do when shopping for anyone other than ourselves. So, you look past MW, and wonder what else is out there.

And then it occurs to you: food. What about a nice juicy burger from Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)? Now that's more like it. Today, the shares are 0.4% lower at $87.28, cutting their 2015 lead to 13.4%. However, the stock is now riding nicely atop its rising 10-day moving average. If put players change their behavior, RRGB could see additional gains. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.24 is an annual high, meaning short-term option traders are more put-skewed now than at any other point in the past year. 

That should do it. Lowe's Companies, Inc. (NYSE:LOW), Home Depot Inc (NYSE:HD), and Men's Wearhouse Inc (NYSE:MW) were all fine options. But your dad is going to love chowing down on that burger from Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB). Although, I'm sure he'd be happy with whatever you got him, as long as you let him nap in peace.

Happy Father's Day!

Neither Apple Inc. (NASDAQ:AAPL) nor the Dow Jones Industrial Average (DJIA) has put in a standout performance over the past three months -- the same time frame in which AAPL has been a member of the Dow. Specifically, since the close on March 18 -- when Apple replaced AT&T Inc. (NYSE:T) -- the security has shed 0.01%, while the DJIA has edged down fractionally. (T, meanwhile, has added 4.1%.) What's noteworthy, though, is that AAPL was sporting a year-over-year advance of roughly 69% in the lead-up to its debut on the DJIA, making one wonder if the transition caused AAPL to lose its luster -- like so many blue chips that came before it -- and succumb to the "Curse of the Dow."

Taking a closer look at AAPL's technical backdrop, the stock showed signs of bucking the Dow jinx, when it topped out at a record high of $134.54 in late April, thanks to a strong showing in the earnings confessional. Since notching the notable milestone, however, AAPL is off 5.5% at $127.10, and is currently staring up at a newfound ceiling in the form of its 60-day moving average.

In the options pits, speculators have been taking notice of this lackluster price action. In fact, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AAPL's 10-day put/call volume ratio of 0.62 rests higher than all other readings taken in the past year. In other words, puts have been bought to open over calls at an annual-high clip in recent weeks.

Echoing this is AAPL's Schaeffer's put/call open interest ratio (SOIR) of 0.80, which ranks in the 80th percentile of its annual range. Simply stated, short-term speculators are more put-heavy than usual toward the stock. Given AAPL's recent retreat from record highs, it's possible that some of this activity -- particularly at out-of-the-money strikes -- is a result of shareholders protecting paper profits against additional losses.

It's an entirely different set-up elsewhere on the Street, however. Among covering analysts, 65% maintain a "buy" or better rating toward AAPL, with not a single "sell" to be found. Plus, the average 12-month price target of $148.75 stands at a 17% premium to current trading levels -- and in territory yet to be charted. Should AAPL's technical troubles continue, a round of downgrades and/or price-target cuts could translate into additional headwinds.

Meanwhile, short sellers have been jumping ship en masse, and in the latest reporting period, short interest dropped 20.8%. However, Apple Inc. (NASDAQ:AAPL) failed to capitalize on this burst of buying power. What's more, just 1.1% of the stock's float is currently sold short, and would take a little more than one day to cover, at average daily trading levels. This leaves little in the way of sideline cash available to help fuel future rally attempts.

Sentiment surrounding aerospace issue Boeing Co (NYSE:BA) has been extremely bearish in the options pits lately. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.33 puts for every call in the last 10 sessions. The resultant put/call volume ratio ranks in the 99th percentile of its annual range, hinting at a stronger-than-usual bearish bias among speculators.

They're not the only ones blazing a skeptical path toward BA. In fact, nearly 13 million shares are sold short. At the stock's typical daily trading levels, it would take four sessions to repurchase all of these short positions.

It's somewhat surprising BA is facing such doubt. The shares have muscled more than 12% higher in 2015 to trade at $145.80, and unlike the Dow, are on pace for their fourth consecutive winning session, up 0.3% today. It's also worth noting BA recently bounced from its 160-day moving average, which has been a bullish signal, historically speaking. After the last five occurrences, the stock has rallied in the ensuing week, averaging a return of 2%.

From a contrarian perspective, this is promising. Specifically, if BA keeps flying higher, it could prompt option bears and/or short sellers to unwind, resulting in tailwinds.

On the fundamental front, it's been a busy day for Boeing Co (NYSE:BA). For starters, Polish carrier Enter Air has placed an order for four 737s, while Russian airline Aeroflot is renegotiating its order. Separately, BA has officially opened its new research center in Alabama.

Analysts adjusted their ratings on streaming giant Netflix, Inc. (NASDAQ:NFLX), drugmaker Heron Therapeutics Inc (NASDAQ:HRTX), and health management solution specialist Healthways, Inc. (NASDAQ:HWAY). Here's a quick roundup of today's brokerage notes on NFLX, HRTX, and HWAY.

• Oppenheimer boosted its price target on NFLX to $800 from $610, expecting the stock to rally into uncharted territory. The equity is failing to capitalize on the bullish brokerage note -- one of many it's received in recent weeks -- and was last seen off 0.3% at $661.33. This negative price action isn't necessarily unexpected, though. The stock has rallied almost 94% year-to-date, and hit a record high of $692.79 as recently as June 10. Even with Netflix, Inc.'s 4.5% decline from this notable milestone, the security's 14-day Relative Strength Index (RSI) is still hovering near overbought territory at 69 -- suggesting additional losses may be on the near-term horizon.


• Leerink raised its price target on HRTX to $38 from $26. As a result, the security jumped to a five-year high of $32.96 out of the gate, but was more recently up 0.6% at $32.43. Longer term, the stock has been on fire in recent weeks, surging almost 163% since its May 28 close at $12.35 -- thanks to some upbeat drug data and analyst attention. Option traders have been hoping for additional gains, too. Specifically, over the past 10 sessions, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 3.68 calls for each put on Heron Therapeutics Inc.


• HWAY tumbled to an annual low of $12.02 -- and was last seen off 20.6% at $12.32 -- after the firm's downwardly revised 2015 revenue forecast was met with a round of bearish brokerage notes. Dougherty, for example, slashed its price target by $10 to $15, saying Healthways, Inc.'s looming challenges could be a reflection of poor leadership. Heading into today's session, the equity was already staring at a nearly 22% year-to-date deficit -- most likely to the delight of short sellers. Short interest edged up 3.6% in the last two reporting periods, and now accounts for 16.6% of HWAY's available float.

Zillow Group Inc (NASDAQ:Z) is sharply higher this afternoon, amid unconfirmed rumors the real estate company may be a buyout target. Among the potential suitors are Google Inc (NASDAQ:GOOGL), and possibly even Facebook Inc (NASDAQ:FB) -- following glowing comments from Z CEO Spencer Rascoff. This is likely welcome news for recent call buyers -- of which there have been many.

Specifically, during the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Z has racked up a call/put volume ratio of 2.36. Not only does this reading indicate more than two calls have been bought to open for every put, it also ranks higher than nine-tenths of comparable metrics from the past year.

Not everyone is so convinced about Z's prospects. For one, over 36% of the stock's float is sold short -- representing more than 12 sessions' worth of trading activity, at typical volumes. In fact, it's possible some of today's call buyers -- especially those initiating positions at out-of-the-money strikes -- may be short sellers attempting to hedge their bets. For another, 80% of covering analysts consider the shares worthy of a tepid "hold" rating.

From a technical perspective, this skepticism seems justifiable. Despite Zillow Group Inc's (NASDAQ:Z) 4.1% rally this afternoon to trade at $90.52, the shares have plunged 45% since hitting an all-time high of $164.90 last July. What's more, today's gains are being contained by Z's descending 32-day moving average.

It's been a rocky year for Twitter Inc (NYSE:TWTR). Things started well enough for the shares, as they were up more than 44% as of April 27. Things turned south, however, when the company's first-quarter earnings leaked early, and since the stock's subsequent 25.7% bear gap on April 28, TWTR has been trending lower -- and touched an annual low of $33.51 earlier this week. 

Today, however, the shares are up 4.2% at $36.11, amid lingering M&A rumors and after the company said it's testing Curator, a new platform that will make it easier for publishers to track users' tweets about their content, while also allowing users to make purchases using interactive features.  What's more, the stock is attempting to claw its way into the black year-to-date.

Judging by today's price action, traders are applauding the e-commerce feature, the first major change since Dick Costolo stepped down as the company's CEO. Option traders, too, seem bullish, as more than 200,000 calls have crossed today, compared to just 68,000 expected. And, even with June options expiration on the horizon, some speculators are apparently opening new bullish bets.

The most active is the weekly 6/26 36-strike call, which it appears traders are purchasing to open, expecting TWTR to extend its gains above $36 before the contracts expire at the close next Friday. 

Now is an opportune time to grab some TWTR options, too, judging by its Schaeffer's Volatility Index (SVI) of 34%, which ranks in the 11th percentile of its annual range. In other words, the stock's short-term options are attractively priced right now, from a volatility standpoint. Plus, TWTR's Schaeffer Volatility Scorecard (SVS) of 96 indicates the stock has tended to make outsized moves, compared to what the options market has priced in during the past year. 

Today's focus on calls isn't a new phenomenon, though, as Twitter Inc's (NYSE:TWTR) short-term option traders were more call-skewed than usual coming into today, according to its Schaeffer's put/call open interest ratio (SOIR). This reading of 0.58 is lower than four-fifths of all others taken in the past year. 

U.S. markets are poised to end the week on a high note, despite ongoing uncertainty over Greece's economic fate. In company news, today's stocks to watch include Chef Boyardee maker ConAgra Foods Inc (NYSE:CAG), biopharmaceutical firm Gilead Sciences, Inc. (NASDAQ:GILD), and chocolate champion Hershey Co (NYSE:HSY). 

• Jana Partners has taken a 7.2% stake in CAG, calling the stock "undervalued." The activist hedge fund also intends on nominating three people to ConAgra Foods Inc's board of directors to address the company's "persistent underperformance." The shares, however, certainly haven't underperformed -- rallying more than 33% year-over-year to settle yesterday at $39.12, after hitting a record high of $39.37. On the news, CAG is set to open at another all-time peak, up 4.8% in electronic trading. This could pave the way for a round of positive analyst notes, as 75% of brokerage firms consider the stock a "hold" or worse, and its consensus 12-month price target of $36 is below current levels. This morning, in fact, Bernstein upped its price target on CAG to $44 from $37.


• GILD's patent application for hepatitis C drug Sovaldi has reportedly been rejected by China. Meanwhile, the drugmaker's stock has soared nearly 29% in 2015 to rest at $121.21, benefiting in recent weeks from its supportive 10-day moving average, and just yesterday notching a new record high of $121.78. This technical tenacity hasn't prevented traders from buying to open puts over calls at a faster-than-usual clip. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Gilead Sciences, Inc. has amassed a put/call volume ratio of 0.74 -- higher than 93% of comparable readings from the past 12 months.


• It's been a bad year for HSY, down 11.2% at $92.26. Things are about to get worse this morning, as the shares are pointed 2.4% lower ahead of the bell, after the company reduced its full-year sales growth forecast and announced 300 employees will be laid off by year-end. This expected southward move will have the stock dangerously close to annual-low territory. This could be bad news for recent call buyers. During the last 50 sessions at the ISE, CBOE, and PHLX, Hershey Co has racked up a call/put volume ratio of 2.80, which sits just 4 percentage points from a 12-month peak.

On one hand, everybody and their local billionaire are taking cover for the next market crash. For today's piece of evidence, I bring you this, from Steven Sears: 

"Major investors are preparing for the stock market to collapse.

In the past 10 days, these investors have quietly amassed significant CBOE Volatility Index (ticker: VIX) call positions. The VIX, commonly referred to as the "fear gauge," spikes in times of volatility. Call options, therefore, increase in value when stock prices plummet. Think of the options as catastrophic insurance policies. These trades are captivating the options market.

With the VIX now just below 15, top positions over the past two weeks include July calls at 17, 22 and 23, and August 17 and 23 calls. In recent trading, an investor bought 100,000 calls in apparent anticipation VIX will spike above 26 before the end of July. A trade of that size is not a retail investor's move -- that's an institution or someone running a significant portfolio." 

On the other hand, thanks to yesterday's rally, we now have yet another week of churn in the S&P 500 Index (SPX). We're right where we were this time last week … and on May 26 … and on April 24 … not to mention Feb. 25. 

In that light, it makes sense that investors' most popular opinion is that they have no opinion. In fact, the number of self-identified "neutral" investors in the American Association of Individual Investors (AAII) sentiment survey just fell beneath 45% for the first time in 10 weeks. 

All of which leads to a burning question. If no one has an opinion, then who is out there buying all these CBOE Volatility Index (VIX) futures and VIX calls?

The answer is likely that we're considering two separate questions. Opinions are interesting, but at the end of the day, maybe they don't mean that much. The VIX Frenzy, however, shows how many are voting with their actual money. And they're "betting" that actual money on a market dip and a volatility rip. 

Now, it's important to note that in the larger scheme of things, the volatility market is very small. You can buy a lot of VIX calls for a relatively low amount of money. Tracking those bets does give us insight into the marketplace, and it's an apples-to-apples comparison in that we see what they're doing in VIX now vs. other points in time. But at the end of the day, it's not a gigantic dollar commitment. 

So where does that leave us? We can't fully trust sentiment numbers, because those don't necessarily reflect actual behavior, but we also can't fully trust numbers like this VIX data because they're just not large enough.

I guess we have to use some intuition. I'm with those that say the rally remains hated and distrusted, and expectations for future volatility outstrip any and every measure of actual volatility. I'm not real sure we keep rallying in spite of all that. I mean, we stop around here every time. But I do believe that in a day or three when we inevitably start obsessing over the next Greece news or potential Fed hike, it puts a natural floor in until we see bullishness tick up.

Disclaimer: Mr. Warner's opinions expressed above do not necessarily represent the views of Schaeffer's Investment Research.

Analysts are weighing in on software solution specialist Red Hat Inc (NYSE:RHT), biotechnology firm Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), and alternative energy issue First Solar, Inc. (NASDAQ:FSLR). Here's a quick roundup of today's bullish brokerage notes on RHT, MNTA, and FSLR.

• RHT last night reported first-quarter earnings that beat analysts' estimates, and Wall Street responded in kind. Specifically, the stock received no fewer than eight price-target hikes, including one from Cantor Fitzgerald to $90 from $85. This represents expected upside of 12.5% to current trading levels. Amid this bullish backdrop, the shares are up 1.8% out of the gate at $79.98, and just tagged a fresh 15-year high of $80.46. Technically speaking, the security has now tacked on 15.6% year-to-date. Option traders, meanwhile, have been bracing for a pullback by buying to open puts over calls at a rapid-fire rate in recent months. In fact, Red Hat Inc's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.56 ranks just 2 percentage points from a 52-week peak.


• Biotechs have had a big week, and today, MNTA is in the spotlight. The stock is up 1.2% at $24.70 out of the gate, after the company's U.S. launch of its generic multiple sclerosis drug was met with upwardly revised price targets from Brean Capital (to $31) and Stifel (to $29). The equity has been on fire since hitting its year-to-date low of $10.22 in early February, more than doubling in value. Additionally, the stock tagged the $25.56 mark this morning -- its loftiest perch since July 2010. A continued rise may prompt short sellers to start throwing in the towel, which could spell additional gains for Momenta Pharmaceuticals, Inc. down the road. Nearly 17% of the security's float is sold short, representing six sessions' worth of pent-up buying demand, at average daily volumes.


• FSLR is up 1.3% in early trading, after Needham upped its price target on the shares to $73 from $69. The brokerage firm cited the successful IPO of 8Point3 Energy Partners (CAFD) -- a yieldco formed between FSLR and SunPower Corporation (NASDAQ:SPWR) -- as the catalyst, saying CAFD is "uniquely positioned as a solar-only yieldco with joint sponsorships by two of the largest solar developers in the world." Separately, CAFD priced its IPO at $21 per share this morning. On the charts, the shares of FSLR have been gaining ground since bouncing in the $49 region last week, up more than 7% to trade at $52.64. Option traders have been rolling the dice on more upside, too. At the ISE, CBOE, and PHLX, for example, First Solar, Inc.'s 10-day call/put volume ratio of 5.29 rests in the 99th annual percentile. In other words, calls have been bought to open over puts with more rapidity just 1% of the time within the past year.

Analysts are weighing in today on oil giant BP plc (ADR) (NYSE:BP), biotech stock BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), and optical components specialist Finisar Corporation (NASDAQ:FNSR). Here's a quick roundup of today's bearish brokerage notes on BP, BMRN, and FNSR. 

• BP is up fractionally this morning at $41.27, following a downgrade to "sector perform" from "outperform" at RBC. After an underwhelming 2014, the stock has picked up the pace, adding over 8% year-to-date. In the meantime, call buying has hit a near-annual-high clip. That is, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BP plc's 10-day call/put volume ratio stands at 35.89, which is only 1 percentage point from an annual bullish high.


• It's been an interesting morning for BMRN, which is off 2.4% to trade at $135.27. First, Baird cut its outlook to "neutral," but raised its price target to $133 from $125. Plus, Wedbush raised its price target to $130. Obviously, both of these price targets represent a discount to current trading levels for the stock, which has easily doubled in value during the past 12 months. What's more, BMRN touched an all-time high of $140.49 just yesterday, thanks to well-received drug news and a round of upbeat analyst attention. Today's mixed analyst notes echo the withstanding sentiment. For example, 12 of 14 brokerage firms rate BioMarin Pharmaceutical Inc. a "buy" or better, while short interest rose over 16% during the two most recent reporting periods.


• FNSR has fallen 8.6% this morning to trade at $20.25, as the Street responds to the company's fiscal fourth-quarter earnings numbers. No fewer than six brokerage firms have weighed in on the stock, but most have actually raised their price targets. Not Raymond James and Jefferies, though. The former lowered FNSR to "outperform," while the latter reduced its target price to $21 from $22.  The shares have been strong since touching an annual low of $14.22 on Oct. 13, adding 42.4%. Still Finisar Corporation remains heavily shorted. The 9% of the stock's float controlled by short sellers represents over three weeks' worth of buying power, at normal daily volumes. 

Tesla Motors Inc's (NASDAQ:TSLA) popular Model S sedan is headed to toy stores around the country, thanks to a deal with Mattel, Inc. (NASDAQ:MAT). Specifically, miniature versions of the electric car will be produced by MAT brands Hot Wheels and Matchbox, as confirmed yesterday on Twitter Inc (NYSE:TWTR).

Our 1:64 Tesla Model S is joined by the real thing! #OrangeIsTheNewTrack @TeslaMotors #HotWheelsTesla pic.twitter.com/QKxlJ5AnVP

— Hot Wheels (@Hot_Wheels) June 18, 2015

The collaboration marks a milestone for TSLA, which has gone from automotive afterthought to iconic name in just a few short years. What's made the company even harder to ignore is its stock's tremendous run on the charts. Since bottoming at $181.40 in late March, the shares have surged 44% to trade at $261.18, and are approaching levels not seen since last October.

More upside could be in store, as well, given Tesla Motors Inc's (NASDAQ:TSLA) high levels of short interest. Over one-quarter of the stock's float is sold short, representing nearly eight days' worth of pent-up buying demand, at typical daily volumes. Should these bears start hitting the exits, it could supercharge TSLA's drive higher.

Shares of MAT haven't been nearly so successful. The toymaker's stock is down more than 13% year-to-date at $26.80, and it's currently struggling to muscle above its 160-day moving average.

Nevertheless, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been bullish toward Mattel, Inc. (NASDAQ:MAT). The equity's 10-day call/put volume ratio of 3.27 outranks 84% of comparable readings from the past year. A capitulation among these bullish bettors could result in headwinds.