Buzz Stocks: Tiffany & Co., Sarepta Therapeutics Inc, and Medivation Inc

Today's stocks to watch include Tiffany & Co. (TIF), Sarepta Therapeutics Inc (SRPT), and Medivation Inc (MDVN)

May 25, 2016 at 10:24 AM
facebook twitter linkedin


U.S. stocks are up, extending yesterday's triple-digit gains, as oil prices continue to rise and rate-hike fears are tempered. Among equities in focus today are luxury retailer Tiffany & Co. (NYSE:TIF), as well as biopharmaceutical stocks Sarepta Therapeutics Inc (NASDAQ:SRPT) and Medivation Inc (NASDAQ:MDVN)

  • TIF is down 1.7% at $62.75, after the company reported its sharpest sales drop since 2009, citing decreased foreign spending in the wake of a stronger dollar. Tiffany & Co. also issued lackluster guidance. The shares are down over 17% year-to-date, and now sits just above their three-year low hit in January. Ahead of earnings, bearish traders were hot on the luxury retailer's stock, with TIF's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 3.32 sitting higher than 94% of all other readings from the past 12 months.

  • SRPT has made huge gains of 21%, putting the shares at $22.32, after the Food and Drug Administration (FDA) delayed its highly anticipated ruling on SRPT's Duchenne muscular dystrophy drug, eteplirsen -- leaving the door open for possible approval. Options traders were growing increasingly skeptical ahead of the decision -- initially expected May 26 -- even as the stock recently toppled its 100-day moving average for the first time since January. Volatility expectations were also through the roof, as SRPT's Schaeffer's Volatility Index (SVI) stands at 416%, higher than any other reading from the past 12 months. Meanwhile, short sellers could be nervous today; 47% of Sarepta Therapeutics Inc's float is currently sold short. 

  • MDVN shares have erased early losses, last seen 0.5% higher at $62.21, with Bloomberg reporting that Celgene Corporation (NASDAQ:CELG) and Gilead Sciences, Inc. (NASDAQ:GILD) could be mulling Medivation bids. MDVN was initially lower on reports that French healthcare company Sanofi SA (ADR) (NYSE:SNY) is planning to oust MDVN's board of directors, after Medivation Inc turned down SNY's $9.3 billion hostile takeover bid. MDVN shares have doubled in value since hitting a two-year low in February, enjoying the support of the stock's 10-day moving average. MDVN's ISE/CBOE/PHLX 10-day put/call volume ratio currently sits in the 94th percentile of its annual range, suggesting a stronger-than-usual bearish appetite. Analysts seem confident in the biopharmaceutical stock, however, with 10 of 14 rating MDVN a "strong buy," and not a "sell" in sight.


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

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners