Buzz Stocks: Verizon Communications Inc., Deutsche Bank AG, and Alkermes Plc

Today's stocks to watch include Verizon Communications Inc. (VZ), Deutsche Bank AG (USA) (DB), and Alkermes Plc (ALKS)

Jan 21, 2016 at 9:26 AM

ALKS
DB
VZ

U.S. stocks are looking to start the day in the black, following dovish remarks from European Central Bank President Mario Draghi. Among the equities in focus are blue chip Verizon Communications Inc. (NYSE:VZ), global investment firm Deutsche Bank AG (USA) (NYSE:DB), and biotech issue Alkermes Plc (NASDAQ:ALKS).

VZ topped Wall Street expectations for fourth-quarter earnings and revenue, pointing the stock 0.7% higher ahead of the open. Like most of the market, Verizon Communications Inc. has been on a downward trend in 2016, and closed at $44.42 on Wednesday. Option traders appeared to be eyeing more downside -- specifically, VZ has a 10-day put/call volume ratio of 2.25 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which is higher than 94% of all comparable readings from the past year.

After announcing that it expects a record loss of approximately $7.3 billion for 2015, DB is set to drop 6.6%, after settling at $19.33 -- and tapping a seven-year low of $19.09 -- on Wednesday. Deutsche Bank AG (USA) has been trending steadily lower for the past two years, and option traders haven't been showing much hope for a rebound. DB's 50-day put/call volume ratio at the ISE, CBOE, and PHLX sits at 1.66 -- in the 96th percentile of its annual range. The company will report preliminary 2015 earnings on Thursday, January 28.

ALKS is down 33.7% in pre-market trading, after its new depression treatment failed to meet goals in a late-stage clinical trial. After a strong finish for 2015, Alkermes Plc has fallen hard in the new year, shedding nearly one-fourth of its value already. The shares finished Wednesday at $60.42, but are set to hit a new annual low today. The news will likely have many option traders heading for the exits. On the ISE, CBOE, and PHLX, ALKS has racked up a 10-day call/put volume ratio of 24 -- meaning 24 calls have been bought to open for each put -- higher than 91% of the past year's readings.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!