Schaeffer's 43rd Anniversary Stock Picks in 2024

Buzz Stocks: Dow Chemical Co, Freeport-McMoRan Inc, and Wynn Resorts, Limited

Today's stocks to watch include Dow Chemical Co (DOW), Freeport-McMoRan Inc (FCX), and Wynn Resorts, Limited (WYNN)

Dec 9, 2015 at 9:36 AM

DD
WYNN
FCX
DOW

After two straight days of losses, U.S. stocks are lower again, with traders' attention remaining on crude oil. Among the equities in focus are chemical specialist Dow Chemical Co (NYSE:DOW), natural resource interest Freeport-McMoRan Inc (NYSE:FCX), and casino concern Wynn Resorts, Limited (NASDAQ:WYNN).

DOW is up 9.7% at $55.76, and just off a decade-plus high of $55.68, amid reports that it's in merger talks with fellow chemical giant DuPont (NYSE:DD). Together, Dow Chemical Co and DuPont are valued at around $120 billion. The deal -- which would be a biggie -- could be announced this week, sources say. DOW has performed well so far this year, adding 22.5%. And on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), options traders are showing a strong bullish preference, as DOW sports a 50-day call/put volume ratio of 3.3 -- in the 98th annual percentile -- indicating more than three calls bought for each put.

After initially dropping in pre-market action, FCX is up 4.5% at $7.04, after the company suspended its annual dividend and cut its oil-and-gas capital expenditures (capex). Freeport-McMoRan Inc CEO James Moffett said the company is "taking further actions to strengthen our financial position during a period of weak and uncertain market conditions." Near-term options traders have been showing a heavier-than-usual preference for puts over calls lately; FCX's Schaeffer's put/call open interest ratio (SOIR) of 1.23 is higher than 85% of comparable readings from the past year. And it's little wonder -- the stock has lost about 70% of its value in 2015, despite activist investor Carl Icahn taking a major stake, and hit a 13-year low of $6.63 on Tuesday.

WYNN is up 8.2% at $66.87, after chairman and CEO Stephen Wynn revealed that he bought 1 million shares on the open market, bringing his total holding in the Las Vegas-based casino to 11.1 million shares, and making him the company's largest shareholder. Wynn Resorts, Limited recently edged higher despite disappointing data out of Macau, but still sits on a 54.8% year-to-date loss. Only five of 15 analysts following WYNN rate it better than a "hold," and options traders seem to agree. The stock's 50-day put/call volume ratio at the ISE, CBOE, and PHLX is 0.8 -- higher than 93% of readings in the last 12 months.

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