Buzz Stocks: Vertex , Macy's, and The Williams Co

Today's stocks to watch in the news include Vertex Pharmaceuticals Incorporated (VRTX), Macy's, Inc. (M), and Williams Companies Inc (WMB)

May 13, 2015 at 9:25 AM

WPZ
WMB
M
VRTX

U.S. stocks appear ready to rebound this morning, with futures signaling a fast start. In company news, today's stocks to watch include drugmaker Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), department store chain Macy's, Inc. (NYSE:M), and energy issue Williams Companies Inc (NYSE:WMB).

VRTX is charging north on news that a Food and Drug Administration panel is recommending the company's cystic fibrosis therapy, Orkambi, for approval. Specifically, the shares are perched 6.8% higher in electronic trading, after closing yesterday at $124.08. Looking more closely at the charts, Vertex Pharmaceuticals Incorporated boasts a year-over-year lead of 86%, and has been grinding higher recently atop its 120- and 160-day moving averages. Along the way, the stock hit a record high of $137.50 on April 23, on the heels of buyout buzz.

M is sitting 2.4% lower ahead of the bell, after the company reported first-quarter results that missed the Street's estimates. In other news, the retailer raised its share buyback plan by $1.5 billion, and its quarterly dividend by 15%. On the charts, Macy's, Inc. is sitting slightly below its year-to-date breakeven mark, resting at $65.33, after pulling back from an early April record peak of $69.98. Meanwhile, traders at the International Securities (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been buying to open puts over calls at a breakneck pace in recent weeks. M's 10-day put/call volume ratio across those exchanges is 2.60 -- higher than 88% of comparable readings from the past year.

WMB announced it will buy affiliate Williams Partners LP (NYSE:WPZ) in an all-stock deal worth nearly $14 billion. As such, Williams Companies Inc shares are soaring in electronic trading, up 5.6%, after closing at $50.10 yesterday. Longer term, WMB has advanced 11.5% year-to-date, and has been trending higher since taking a bounce off its 32-month moving average. Option traders remain unconvinced, though. WMB's 10-day ISE/CBOE/PHLX put/call volume ratio of 2.11 ranks in the 88th percentile of its annual range, meanings speculators have been buying to open puts over calls at a much faster-than-usual rate.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!