Buzz Stocks: Under Armour, Bank of America, and CIGNA

Today's stocks to watch in the news include Under Armour Inc (UA), Bank of America Corp (BAC), and CIGNA Corporation (CI)

Jul 23, 2015 at 9:23 AM
facebook twitter linkedin

U.S. stocks could extend their recent losses today, as earnings season fails to impress. In company news, today's stocks to watch include sports apparel designer Under Armour Inc (NYSE:UA), financial firm Bank of America Corp (NYSE:BAC), and healthcare concern CIGNA Corporation (NYSE:CI)

  • UA is poised to open at an all-time high, after the company topped expectations in the earnings confessional and upped its full-year sales forecast once again. Specifically, the shares are up 3.2% in pre-market trading, after finishing at $89.37 yesterday. This expected technical milestone could have short sellers shaking in their boots. Over 8% of Under Armour Inc's float is sold short, which would take more than eight sessions to repurchase, at the stock's typical daily volumes. In other words, there's plenty of sideline cash available to boost UA to even higher highs.

  • BAC Chief Financial Officer Bruce Thompson is stepping down, and will be replaced by Paul Donofrio, headlining a round of upper management changes. On the charts, the stock hit a five-year high of $18.48 yesterday, before settling at $18.45 -- up 3.1% in 2015. Skepticism is running high in Bank of America Corp's options pits, however. During the last 50 days on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has racked up a put/call volume ratio of 0.24 -- higher than nearly three-quarters of comparable readings from the past year. In other words, speculators have been buying to open BAC puts over calls at an accelerated clip.

  • Finally, Anthem Inc's (NYSE:ANTM) $48 billion acquisition of CI -- roughly $188 per share -- could be announced by week's end, according to inside sources. The rumblings have CIGNA Corporation poised to gap 5% higher at the open. Longer term, the stock has been a beast, surging close to 47% year-to-date at $151.07, and perched atop its 10-week moving average. Option bulls should be happy. CI's 10-day ISE/CBOE/PHLX call/put volume ratio of 7.57 ranks in the 86th percentile of its annual range.

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!


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners