Schaeffer's 43rd Anniversary Stock Picks in 2024

Buzz Stocks: Abercrombie & Fitch Co., Relypsa Inc, and Tidewater Inc.

Today's stocks to watch include Abercrombie & Fitch Co. (ANF), Relypsa Inc (RLYP), and Tidewater Inc. (TDW)

May 26, 2016 at 10:38 AM
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U.S. stocks are struggling to maintain their early oil-inspired gainsAmong equities in focus today are apparel retailer Abercrombie & Fitch Co. (NYSE:ANF), biopharmaceutical company Relypsa Inc (NASDAQ:RLYP), and offshore energy stock Tidewater Inc. (NYSE:TDW).

  • RLYP is up 1.5% to $16.43, after the company applied for a labeling change with the FDA for its hyperkalemia drug, Veltassa, to reduce the dose-separation requirement from six to three hours. The drugmaker recently hit headwinds as the number of patients taking Veltassa dropped, and a reduction in dose-separation requirements could attract more patients. The stock has blazed a path of lower highs since early 2015, with recent rebound attempts stalling beneath its 50-week moving average. RLYP has lost over 40% so far this year, and short sellers have been keeping an eye on the shares, with 46.2% of the stock's float short sold -- an amount that would take traders more than a week to cover, at Relyspa Inc's average daily volume. Near-term options traders seem to be more optimistic, with RLYP's Schaeffer's put/call open interest ratio (SOIR) sitting lower than 92% of all other readings from the past month, suggesting a fairly strong call-bias.

  • TDW shares have plummeted 29.7% to $4.30 -- and just hit their lowest point since the mid-1980s, at $3.93 --  after a bleak earnings report. In addition, the company said it may have to default on its debt, and warned that an auditor's report will likely question the firm's ability to carry on as a going concern. Tidewater Inc. has been a favorite of bearish bettors as of late, with TDW's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) currently higher than any other reading from the past year, with nearly 21 puts opened for every one call option. Short sellers have also been hot on the stock, with 25.5% of TDW's float currently sold short -- an amount that would take traders nearly two weeks, at TDW's average daily volume, to cover.

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