Early Edge: Builders FirstSource, Symantec, Under Armour

Stocks making headlines include Builders FirstSource, Inc. (BLDR), Symantec Corporation (SYMC), and Under Armour Inc (UA)

Apr 13, 2015 at 10:48 AM
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The major market indexes are higher in early trading, despite uninspiring data from overseas. Among the equities making an early splash on the Street are construction supplier Builders FirstSource, Inc. (NASDAQ:BLDR), digital security concern Symantec Corporation (NASDAQ:SYMC), and athletic apparel maker Under Armour Inc (NYSE:UA).

  • BLDR is up 59.1% at $10.98, and earlier tagged a seven-year high of $11.29, after the firm announced plans to buy privately held ProBuild Holdings for $1.63 billion in cash. As such, Builders FirstSource, Inc. options are flying off the shelves at a rapid-fire rate, especially on the call side. The April 12.50 call -- most active thus far -- has seen a mix of buy- and sell-to-open action, while it looks like bears are buying to open the April 10 put to bet on BLDR retreating into single-digit territory by the close on Friday, when front-month options expire. Elsewhere, BLDR shorts are likely feeling the heat; it would take nearly 18 sessions to buy back all the shorted shares, at the stock's average pace of trading.

  • SYMC has dipped 2.7% to flirt with $24.89, amid reports the firm has been looking to unload its Veritas business. SYMC options are trading at four times the average intraday clip, though calls have outnumbered puts by a margin of 3-to-1. What's more, the stock's 30-day at-the-money implied volatility has popped 34.4% to 35.9%. April-dated options -- which expire the same day as Symantec Corporation's analyst day -- are dominant, with speculators placing bets on the stock's short-term trajectory. The equity is now 2.8% lower year-to-date, and analysts were already bearish, with just two out of 20 doling out "buy" or better opinions.

  • Finally, UA jumped to an all-time high of $85.94 out of the gate, and was last seen 1.1% higher at $84.70. Speculators are apparently hoping for a brand boost from golf phenom Jordan Spieth, who has been setting records at the Masters. Under Armour Inc options are crossing the tape at twice the average intraday clip, with calls outpacing puts by a nearly 2-to-1 margin. It looks like bulls are buying to open the April 87.50 call -- most popular on the day -- to gamble on even higher highs for UA. However, analysts have yet to capitulate, and a short squeeze could propel UA even higher; at the stock's average daily trading volume, it would take close to seven sessions to repurchase these pessimistic positions.
 

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