In the Spotlight: GREK, NBG, SBLK, DRYS, JD, and DANG

Greece- and China-based names making moves include GREK, NBG, SBLK, DRYS, JD, and DANG

by Andrea Kramer

Published on Jul 13, 2015 at 12:51 PM
Updated on Jul 13, 2015 at 12:53 PM

U.S. stocks are once again following their global peers higher, as speculators cheer a Greek debt deal and another surge in China. Among the names in focus are the Global X FTSE Greece 20 ETF (NYSEARCA:GREK), the National Bank of Greece (ADR) (NYSE:NBG), shipping issues Star Bulk Carriers Corp. (NASDAQ:SBLK) and DryShips Inc. (NASDAQ:DRYS), and Chinese Internet concerns JD.Com Inc (ADR) (NASDAQ:JD) and E-Commerce China Dangdang Inc (ADR) (NYSE:DANG). 

Despite signs that Greece could avoid a "Grexit," GREK has surrendered its pre-market gains, down 3.9% at $10.82. Perhaps traders are jittery ahead of eurozone parliament votes. In any case, puts are crossing the tape at three times the average intraday rate, with buy-to-open action detected at the July 11.50 put. The puts will move deeper into the money the lower GREK sinks south of $11.50 this week, which represents the options' lifetime. Meanwhile, amid all the uncertainty surrounding Greece, short interest on GREK more than doubled during the last two reporting periods. 

NBG has also reversed course, and was last seen 2.5% lower at $1.18. During the past 10 sessions, traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open NBG puts over calls at a near-annual high clip. Today, NBG puts are crossing at three times the average intraday rate, with apparent buy-to-open action transpiring at the August 0.50 put. 

On the other hand, Greek shipping concerns DRYS and SBLK are higher at midday, extending Friday's gains. The former is up 12% at $0.60, and the latter has added 5.3% to wink at $2.71. Prior to today, DRYS sported a 14-day Relative Strength Index (RSI) of 32, and SBLK's RSI was at 30 -- in oversold territory. It's no surprise, as DRYS and SBLK have underperformed the broader S&P 500 Index (SPX) by 28 and 33 percentage points, respectively, during the past three months. 

Stocks in China surged again on Monday, and JD is among the beneficiaries gaining ground in New York. The equity is up 6.1% at $34.36, and on pace to end atop its 20-day moving average for the first time since mid-June. Speculators today are apparently buying to open JD's July 34 call -- the most active option thus far -- rolling the dice on a continued rally north of $34 through Friday's close, when front-month options expire. 

DANG is also soaring, though not necessarily due to the China rally. The stock was last seen 6.4% higher at $6.99, after the company said it's forming an independent committee to weigh a going-private offer.


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