Buzz Stocks: Mobileye NV, Activision Blizzard, Inc., and Aquinox Pharmaceuticals Inc

Today's stocks to watch include Mobileye NV (MBLY), Activision Blizzard, Inc. (ATVI), and Aquinox Pharmaceuticals Inc (AQXP)

Nov 3, 2015 at 9:29 AM

U.S. stocks are set to take a breather after Monday's surge. Among the equities in focus are driver-assistance software concern Mobileye NV (NYSE:MBLY), video game maker Activision Blizzard, Inc. (NASDAQ:ATVI), and biotech Aquinox Pharmaceuticals Inc (NASDAQ:AQXP).

MBLY is pointed 3% higher ahead of the bell, after the firm reported stronger-than-expected third-quarter earnings and sales. What's more, a short squeeze could add fuel to the shares' fire. Short interest accounts for nearly 20% of Mobileye NV 's total available float, representing 11 sessions' worth of pent-up buying demand, at the stock's average pace of trading. However, will it be enough to boost MBLY above its 10-week moving average? This trendline -- currently docked at $47.63 -- has stifled MBLY's rebound attempts since the August swoon. On Monday, MBLY settled at $45.54.

ATVI is fractionally lower in pre-market trading, as traders digest the "Call of Duty" producer's third-quarter earnings and plans to buy "Candy Crush" maker King Digital Entertainment PLC (NYSE:KING) for $5.9 billion. Heading into earnings, Activision Blizzard, Inc. was surrounded by pessimism. It would take about seven sessions to repurchase all the shorted ATVI shares, at the equity's average pace of trading, and the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.59 stands higher than 84% of all other readings from the past year. In other words, near-term options traders have rarely been more put-biased. Still, ATVI has already shaken off most of its post-earnings losses. Should the stock turn higher, a mass exodus of bears could help ATVI extend its year-to-date lead of more than 71.5%. Yesterday, ATVI finished at $34.57 -- within a point of record-high territory.

AQXP is poised for a 10% plunge out of the gate, after the firm's experimental skin drug failed a mid-stage study. Aquinox Pharmaceuticals Inc said it will now focus on further development of AQX-1125, its experimental bladder drug that caused much fanfare last month, and said it's looking forward to its Dec. 8 meeting with the Food and Drug Administration (FDA) about "pivotal trial designs." On the charts, AQXP has been stagnating in the $15-$20 range for the past few weeks, closing at $16.36 yesterday. Should the stock take a turn for the worse and breach the lower end of this rail, it could be vulnerable to downgrades. Currently, five out of six analysts offer up "buy" or better opinions.

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

Follow @Schaeffers

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

Schaeffer’s Options Trading Service Highlights

+172% Portfolio Return

+522% Portfolio Return

+1,395% Portfolio Return

+1,466% Portfolio Return

+388% Portfolio Return

+855% Portfolio Return

Click here to contact us for complete performance tracking

Special Offers from Schaeffer's Trading Partners