Buzz Stocks: J C Penney Company Inc, Apple Inc., Tiffany & Co.

Today's stocks to watch include J C Penney Company Inc (JCP), Apple Inc. (AAPL), and Tiffany & Co. (TIF)

May 13, 2016 at 10:35 AM
facebook twitter linkedin


U.S. stocks are down, thanks to falling oil prices, a strengthening dollar, and another slew of disappointing retail earnings reports. Among equities in focus today are department store retailer J C Penney Company Inc (NYSE:JCP), tech stock Apple Inc. (NASDAQ:AAPL), and luxury retailer Tiffany & Co. (NYSE:TIF).

  • JCP is the latest in a long line of retailers to deliver disappointing quarterly results at the earnings confessional. The department store stock is down 5.4% at $7.38, after announcing the company's first comparable-store sales miss in 10 quarters. J C Penney Company Inc's shares have lost nearly 40% of their value since reaching a two-year peak in March, and recently crossed their 160-day moving average, which lent the stock support for most of 2015. Even prior to today, JCP's 14-day Relative Strength Index (RSI) was at 25 -- in oversold territory --  due to sector-wide headwinds. Put buyers have been especially interested in the stock, with JCP's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 1.10 currently in the 98th percentile of its annual range.

  • AAPL is up 0.9% at $91.11, clawing higher from yesterday's annual low, after the tech titan announced it had invested $1 billion in Didi Chuxing, China's largest ride-share app. The stock may still be set to finish the week under the critical $92 level, though. However, AAPL's 14-day RSI of 23 indicates that perhaps a short-term bounce was in the cards. Near-term options players have been exceptionally call-biased, even after blue chip's longest losing streak in decades, with AAPL's Schaeffer's put/call open interest ratio (SOIR) of 0.59 sitting lower than 99% of all other readings from the past year.
  • TIF is down 2.4% at $64.80, after the luxury good retailer's CFO announced his resignation, effective May 20, to become the finance chief at consumer goods company Newell Brands Inc (NYSE:NWL). TIF has stair-stepped lower since hitting a record high of $96.43 in August, and this week breached its 80-day moving average -- which halted the equity's late-2015 rebound attempts -- after an earnings miss. Put players have been hot on the stock lately, with Tiffany & Co.'s 10-day ISE/CBOE/PHLX put/call volume ratio of 11.2 higher than it has been at any other point in the past 12 months. 

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

 

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! 

 

300x250 - Banner 3 - v1