Buzz Stocks: Chesapeake Energy Corporation, Western Digital Corp, and Tesla Motors Inc

Today's stocks to watch include Chesapeake Energy Corporation (CHK), Western Digital Corp (WDC), and Tesla Motors Inc (TSLA)

by Mark Fightmaster

Published on Sep 30, 2015 at 10:05 AM
Updated on Sep 30, 2015 at 10:19 AM

A tough quarter is set to come to an end today, and it appears U.S. benchmarks are going to try and finish on a high note. Today's equities in focus are oil-and-gas firm Chesapeake Energy Corporation (NYSE:CHK), data storage company Western Digital Corp (NASDAQ:WDC), and electric vehicle concern Tesla Motors Inc (NASDAQ:TSLA).

  1. CHK is 1.8% higher at $6.91, after the company announced that it laid off 15% of its workforce. Chesapeake Energy Corporation made the move to cut expenses amid low oil and gas prices. The energy concern has performed rather poorly of late; in fact, since hitting a near-term high of $9 two weeks ago, the stock has shed over 23%. Longer term, the shares have been pressured by their 10- and 20-week moving averages. Short sellers have taken note of CHK's technical troubles, as a sizable 33.7% of its float is sold short. Short sellers aren't alone in their bearish stance toward CHK, as short-term option players have stocked up on puts relative to calls. The equity's Schaeffer's put/call open interest ratio (SOIR) of 3.15 is lower than just 9% of the readings taken in the past 52 weeks.
  • WDC rocketed nearly 16% higher to $80.11 after the opening bell sounded, pushed higher by news that China-based Unisplendour is going to invest $3.78 billion to buy a 15% stake in the data firm. Shares of Western Digital Corp were last seen at $76.99, still up nearly 12%. Longer term, though, the stock has had a rough run, losing 13% since hitting a near-term high of $88.46 during the last week of July. Short-term option players have displayed an appetite for WDC calls over puts, as its SOIR of 0.49 sits at a 52-week low. Similarly, on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WDC's 10-day call/put volume ratio of 5.48 is higher than 96% of the readings taken during the past year.
  • TSLA is 0.7% lower this morning at $245, despite last night's introduction of the Model X electric SUV and a global rally among automakers. Tesla Motors Inc CEO Elon Musk noted that the company "may have gone a little overboard with pushing the engineering" for the vehicle. Despite the security's solid 10% year-to-date gain, short sellers have stocked up on bearish bets. Over 26% of TSLA's float is sold short -- signaling enough pent-up pessimism to spark a short-covering rally, if good news spooks bears from their pessimistic positions. Bearish option players have also taken a shine to TSLA, as the firm's 10- and 50-day put/call volume ratios on the ISE, CBOE, and PHLX both rank in the 71st percentile of all readings taken in the past year.
     

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