Buzz Stocks: Rite Aid Corporation, Merck & Co., Inc., and Nu Skin Enterprises, Inc.

Today's stocks to watch in the news include Rite Aid Corporation (NYSE:RAD), Merck & Co., Inc. (NYSE:MRK), and Nu Skin Enterprises, Inc. (NYSE:NUS)

Josh Selway

Jun 16, 2016 at 9:24 AM

U.S. stocks are set to open in the red, as investors consider the latest round of central bank decisions. Among the equities in focus today are pharmacy chain Rite Aid Corporation (NYSE:RAD), drugmaker Merck & Co., Inc. (NYSE:MRK), and personal care stock Nu Skin Enterprises, Inc. (NYSE:NUS).

RAD is down 1.5% ahead of the open, after the company's disappointing first-quarter earnings results. The stock has traded in a tight range this year, as traders await a decision in its pending M&A deal. Specifically, Rite Aid Corporation closed last night at $7.82, just below its 2016 breakeven mark of $7.84. In the meantime, call buying has remained popular at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The stock's 50-day call/put volume ratio across these exchanges stands at 2.02.

MRK is 1.8% higher in electronic trading, thanks to encouraging results from its cancer drug, Keytruda. At $56.09, the shares had already climbed to a more than 6% gain year-to-date, enjoying support from their rising 60-day moving average. Still, Merck & Co., Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 1.07 is at a 12-month high, meaning short-term options traders are more put-focused than at any point in the past year.

NUS is eyeing a 3% pop out of the gate, after the company agreed to a $210 million investment from a group of Chinese investors -- a move meant to help the company grow its presence in China. Nu Skin Enterprises, Inc. has performed well on the charts recently, surging more than 73% since its February bottom of $23.51, to trade at $40.69. Short interest has been declining as a result, and NUS could benefit from a short-squeeze situation going forward, since these bears still control close to three weeks' worth of buying power, at the stock's average daily volumes.

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