Stocks On the Move: Achillion Pharmaceuticals, Inc., 3D Systems Corporation, and JD.Com Inc (ADR)

ACHN, DDD, and JD are moving sharply in Monday's trading

by Karee Venema

Published on Nov 10, 2014 at 1:04 PM
Updated on Apr 20, 2015 at 5:32 PM

Both the Dow and broader S&P 500 Index (SPX) are continuing their record-setting runs today. Drilling down on specific equities, drugmaker Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN), 3-D printing specialist 3D Systems Corporation (NYSE:DDD), and Chinese e-commerce concern JD.Com Inc (ADR) (NASDAQ:JD) are all making notable moves. Here's a closer look at how ACHN, DDD, and JD are performing on the charts so far.

  • ACHN is up 23% at $12.43, after its hepatitis C treatment, ACH-3102 -- which works in combination with Gilead Sciences, Inc.'s (NASDAQ:GILD) Sovaldi -- showed promise in its mid-stage trial. Additionally, the data prompted FBR to speculate that should similar success occur over a smaller time frame for treatment, a potential acquisition of ACHN by GILD could be on the horizon. Today's bullish gap just echoes ACHN's technical prowess, with the stock more than tripling in value on a year-to-date basis. It's no surprise, then, to see option players displaying a distinct bias toward calls over puts. For example, the security's 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 5.21 indicates more than five calls have been bought to open for each put during the past month. Echoing this is ACHN's Schaeffer's put/call open interest ratio (SOIR) of 0.33, which ranks lower than 79% of similar readings taken in the past year. Simply stated, short-term speculators are more call-skewed than usual toward Achillion Pharmaceuticals, Inc.

  • DDD is 4.6% higher this afternoon to trade at $36.04, after the company posted a better-than-expected third-quarter profit this morning. Heading into today's session, DDD was sitting on a nearly 63% year-to-date deficit, and option traders were rolling the dice on additional losses, per the equity's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.11, which ranks in the 84th percentile of its annual range. Today, though, calls are trading at a 76% mark-up to the average intraday rate, and are outpacing puts by an almost 2-to-1 margin. Buy-to-open activity has been detected at DDD's weekly 11/14 37- and 38-strike calls, as traders gamble on more upside for 3D Systems Corporation through week's end, when the series expires.

  • Similar to sector peer Alibaba Group Holding Ltd (NYSE:BABA), JD is in the green ahead of China's highly anticipated "Singles Day" shopping event. At last check, shares of JD were up 7% at $26.50, and on pace to close north of their 50-day moving average for the first time since Sept. 18. Since going public in late May, the stock has added nearly 22%, yet sentiment around the Street is tilted toward the bearish side. In the options pits, the stock's 10-day ISE/CBOE/PHLX put/call volume ratio weighs in at 1.89, while its SOIR is docked at a put-heavy 1.77. Elsewhere, 12.5% of the security's float is sold short, and it would take more than six sessions to cover these shorted shares, at JD.Com Inc's (ADR) average daily pace of trading.

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