Today's stocks to watch include Bank of America Corp (BAC), Eagle Pharmaceuticals Inc (EGRX), and Titan Machinery Inc. (TITN)
U.S. stocks are trading higher this morning, boosted by
gains in crude oil. Among equities in focus are financial firm
Bank of America Corp (NYSE:BAC), drugmaker
Eagle Pharmaceuticals Inc (NASDAQ:EGRX), and agricultural equipment company
Titan Machinery Inc. (NASDAQ:TITN).
- BAC announced that its board of directors has upped its $4 billion share buyback plan by an additional $800 million. The news has the stock up 2.2% out of the gate at $13.70, but still sitting on a 19% year-to-date deficit. That hasn't kept option traders from purchasing Bank of America Corp calls at a breakneck pace in recent weeks. Specifically, during the past 20 sessions at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 4.11 BAC calls for every put.
- EGRX has plunged 18.5% this morning at $43.73, after the U.S. Food and Drug Administration (FDA) rejected the company's blood thinner. Of course, the stock is no stranger to big losses, surrendering half of its value on a year-to-date basis. Short sellers have been boarding Eagle Pharmaceuticals Inc's bearish bandwagon with a quickness. During the last two reporting periods, short interest spiked 31.5%, and now accounts for over 53% of the stock's total float. At EGRX's average daily volumes, it would take approximately eight sessions to cover these bets.
- TITN offered up fourth-quarter earnings and sales estimates below the Street's expectations, prompting Craig-Hallum to cut its price target to $13 from $15. As such, the shares have plunged 11.6% to trade at $11.10, and are testing the lower range of their March 4 upside gap. In the options pits, short-term traders are more put-skewed than usual toward Titan Machinery Inc., with put open interest outstripping call open interest by a roughly 6-to-1 margin among options expiring in three months or less. Specifically, TITN's Schaeffer's put/call open interest ratio (SOIR) stands at 6.09, topping 78% of all comparable readings from the prior year.
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