Buzz Stocks: Facebook Inc, Yahoo! Inc., and Zafgen Inc

Today's stocks to watch include Facebook Inc (FB), Yahoo! Inc. (YHOO), and Zafgen Inc (ZFGN)

Dec 2, 2015 at 9:29 AM
facebook twitter linkedin


U.S. indexes are pointed lower this morning, as traders await comments from Fed Chair Janet Yellen -- which many expect will underscore expectations for a rate hike this month, especially in light of today's positive ADP report. Among the equities in focus are social media giant Facebook Inc (NASDAQ:FB), Internet interest Yahoo! Inc. (NASDAQ:YHOO), and drugmaker Zafgen Inc (NASDAQ:ZFGN).

  • FB is set to open 0.1% lower today, as CEO Mark Zuckerberg and his wife, Dr. Priscilla Chan, wrote an open letter to their newborn daughter, vowing to put 99% of their Facebook Inc shares -- worth about $45 billion -- into the Chan Zuckerberg Initiative, a philanthropic foundation the couple set up to further causes they support. Technically, FB has been a monster on the charts, trending higher since mid-2013, adding 37.3% so far in 2015, and hitting a new all-time high of $110.65 last month. Options traders have been hoping for higher highs, as well. The stock has a Schaeffer's put/call open interest ratio (SOIR) of 0.60 -- lower than more than two-thirds of readings from the past year -- meaning that near-term traders have been favoring calls more than usual. On Tuesday, FB closed at $107.12.
  • ZFGN is headed for a sharp 58% plunge from its Tuesday close of $15.93, which will mean a new all-time low. The drop comes as the drugmaker reported a second death in an ongoing trial of a treatment for a rare genetic disorder that is linked to obesity. After Zafgen Inc reported the first patient death in October, the U.S. Food and Drug Administration (FDA) placed a partial hold on the study, while the shares dropped to an all-time low of $9.53. ZFGN is now working with the FDA to determine what steps to take next. Meanwhile, five of the six brokerages following the stock -- which has shed nearly half its value year-to-date -- maintain a "buy" rating or better. Any downgrades could exacerbate selling pressure.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners