Stocks On the Move: NQ Mobile Inc (ADR), Petroleo Brasileiro Petrobras SA (ADR), and SodaStream International Ltd

NQ, PBR, and SODA are moving sharply in Monday's trading

by Karee Venema

Published on Oct 27, 2014 at 1:35 PM
Updated on Apr 20, 2015 at 5:32 PM

Markets are little changed this afternoon, as traders take a wait-and-see approach to this week's Federal Open Market Committee (FOMC) policy-setting meeting. Among equities making notable moves, however, are mobile security specialist NQ Mobile Inc (ADR) (NYSE:NQ), oil-and-gas issue Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and at-home beverage maker SodaStream International Ltd (NASDAQ:SODA). Here's a quick look at how NQ, PBR, and SODA are performing on the charts so far.

  • NQ has rallied more than 7% to trade at $9.58, after filing its twice-delayed annual report for 2013. In a response to the filing, Muddy Waters Research Group -- which accused NQ Mobile Inc (ADR) of deception -- said the company "remains a massive fraud" and that its auditor displayed prejudice. Heading into today's session, the stock was down 39.2% year-to-date, yet traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 9.85 calls for each put over the past 20 sessions. With nearly 58% of the security's float sold short, a portion of this activity, specifically at out-of-the-money strikes, could be a result of short sellers hedging their bearish bets against a big move higher.

  • PBR has shed 15% -- and been placed on the short-sale restricted (SSR) list -- after left-wing incumbent Dilma Rousseff was narrowly named the victor in Brazil's presidential election. The stock was swinging wildly in the weeks leading up to the election, and thanks to today's sharp sell-off, which has the shares lingering near $10.99, Petroleo Brasileiro Petrobras SA (ADR) is staring at a 22.6% month-to-date deficit. On the sentiment front, the equity's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.41 ranks higher than 95% of similar readings taken in the past year, meaning puts have been bought to open over calls at a near-annual-high clip in recent months. Today, though, calls are crossing the tape at a rate three times the intraday average. Meanwhile, now that the uncertainty surrounding the election has lifted, the equity's 30-day at-the-money implied volatility has plunged 56% to 56.5%.

  • After surging more than 15% on Friday following news of a freshly inked partnership with PepsiCo, Inc. (NYSE:PEP), SODA is down 9.7% to churn near $22.08, as traders take some profits off the table ahead of Wednesday's early morning earnings report. Today's price move highlights the stock's withstanding technical troubles, with SODA surrendering more than 55% of its value in 2014. Not surprisingly, sentiment around the Street is tilted toward the bearish side. At the ISE, CBOE, and PHLX, for example, the security's 10-day put/call volume ratio of 1.59 ranks 7 percentage points from a 52-week peak. Elsewhere, all nine analysts covering SodaStream International Ltd maintain a "hold" or "strong sell" suggestion.

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