Buzz Stocks: Bank of America Corp, Apple Inc., and SanDisk Corporation

1. BAC is 2.2% higher at $15.86, after announcing a larger-than-expected third-quarter profit. Bank of America Corp's third-quarter profit of 37 cents per share topped Wall Street's expectation for a profit of 33 cents per share. Pessimism had been building in the option pits ahead of the company's earnings, and the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume of 0.30 ranks in the 94th percentile of all similar readings taken during the past 52 weeks. It certainly appears that analysts have turned a blind eye to the stock's poor performance (dropping 11.3% since the end of July), as BAC garners 11 "strong buys" and three "buys" out of 18 total rankings. Downgrades from this bullish brokerage bunch could result in further downside pressure. 

• AAPL is 1.4% lower this morning at $110.28, after a jury found that the company infringed on a University of Wisconsin tech patent. Apple Inc. now faces up to $862 million in damages after the U.S. District Court in Madison rejected its claims that the patent was invalid. The suit concerns technology that the company used in its latest batch of iPhone and iPad processors. Although the stock has backed off a bit from its late April all-time high of $134.54, it has found a measure of support from its 20-month moving average. Bears rule the day in the option pits, as AAPL's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.76 ranks higher than 94% of the readings taken in the past year. What's more, AAPL's 50-day put/call volume ratio of 0.72 ranks in the 97th percentile of its annual readings. Capitulation from this bearish gathering could result in positive pressure on the shares.

• SNDK is 12.9% higher at $69.74 this morning after reports surfaced that Micron Technology, Inc. (NASDAQ:MU) and Western Digital Corp (NASDAQ:WDC) were in talks about a potential acquisition of the flash memory firm. Although SanDisk Corporation has hired a bank to help with the process, no decision has been made and the talks may not result in a transaction. In the options pits, call buying has been preferred, as SNDK's 10-day call/put volume ratio on the ISE, CBOE, and PHLX of 2.72 is higher than 84% of comparable readings taken in the past 52 weeks.

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