Buzz Stocks: Humana, Potash Corporation, Celladon Co

Today's stocks to watch include Humana Inc (NYSE:HUM), Potash Corp./Saskatchewan (USA) (NYSE:POT), and Celladon Corp (NASDAQ:CLDN)

by Josh Selway

Published on Jun 26, 2015 at 9:30 AM
Updated on Jul 2, 2020 at 12:09 PM

Although Chinese stocks took a beating, domestic equities appear ready for a strong end-of-week finish. Among the equities in focus are health insurer Humana Inc (NYSE:HUM), fertilizer concern Potash Corp./Saskatchewan (USA) (NYSE:POT), and biotech stock Celladon Corp (NASDAQ:CLDN).

  • After getting a boost yesterday -- along with the rest of the healthcare sector, thanks to the Supreme Court's "Obamacare" decision -- HUM is on the way up again in electronic trading, adding 1.4%. Traders are reacting to a report from Bloomberg that said the company is close to being acquired by sector peer Aetna Inc (NYSE:AET). Prior M&A rumors are part of the reason Humana Inc is up more than 37% in 2015, settling at $197.08 yesterday -- though option traders remain put-focused. The stock's Schaeffer's put/call open interest ratio (SOIR) stands at 1.18, higher than 72% of readings from the past year. This means put open interest outweighs call open interest among options expiring in three months, and that short-term traders are more put-skewed than normal.

  • POT is moving slightly lower ahead of the bell, on reports the company is in talks to buy German rival K+S AG. With its close at $31.89 yesterday, Potash Corp./Saskatchewan is almost 10% below its year-to-date breakeven mark. There remains a short-term bullish trend in the stock's options arena, however. POT's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 15.17 sits at an annual high.

  • CLDN is getting annihilated in pre-market action -- and on track for a record low this morning -- after the company announced it has suspended development of its gene therapy drug Mydicar, and that it may be forced to liquidate if it doesn't find a buyer. The shares are already 89% lower in 2015, settling at $2.20 yesterday, and analysts are steering clear. All of the brokerage firms tracking Celladon Corp say it's a "hold." Still, CLDN's SOIR of 0.40 reveals short-term call open interest heavily outweighs put open interest.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter