Buzz Stocks: Tesla Motors Inc, Mobileye NV, and Chipotle Mexican Grill, Inc.

Today's stocks to watch in the news include Tesla Motors Inc (NASDAQ:TSLA), Mobileye NV (NYSE:MBLY), and Chipotle Mexican Grill, Inc. (NYSE:CMG)

Jul 1, 2016 at 9:54 AM
facebook twitter linkedin


Stocks are sticking close to the flatline this morning, ahead of a raft of economic data and a long holiday weekend. Meanwhile, among specific equities in focus are electric car concern Tesla Motors Inc (NASDAQ:TSLA), tech stock Mobileye NV (NYSE:MBLY), and burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG).

  • TSLA stock is down 1.8% at $208.52, after the National Highway Traffic Safety Administration (NHTSA) said it will investigate a fatal accident involving the firm's Model S sedan. Specifically, the driver was killed while using the "Autopilot" function -- the first known fatality of its kind, according to Tesla Motors Inc. On the charts, TSLA had been battling back since hitting a three-month low on the heels of its buyout bid for SolarCity Corp (NASDAQ:SCTY), but ran out of steam at its formerly supportive 120-day moving average on Thursday. Short interest, meanwhile, edged up in the latest reporting period, and now accounts for a whopping 27.3% of TSLA's available float -- or 7.3 times the average daily trading volume.

  • MBLY has reversed course after initially falling in sympathy with TSLA, up 1.5% at $46.85. Fresh off yesterday's news of a big blue-chip partnership to develop self-driving car technology, Mobileye NV issued a statement over the Model S fatality, saying its systems "will include Lateral Turn Across Path (LTAP) detection capabilities beginning in 2018, and the Euro NCAP safety ratings will include this beginning in 2020." On the charts, MBLY has surged nearly 99% since hitting a record low of $23.57 in early February -- and analysts are optimistic. Ten out of 12 brokerage firms maintain a "buy" or better rating on the stock, compared to two "holds" and not a single "sell."

  • CMG's chief creative and development officer, Mark Crumpacker, has been indicted in a cocaine drug ring. This is just the latest PR nightmare for the firm, and Chipotle Mexican Grill, Inc. has since put Crumpacker -- one of its highest-paid executives -- on administrative leave. At last check, shares of CMG were down 0.8% at $399.50, widening their year-over-year deficit to 34.5%. Nevertheless, options traders have initiated long calls over puts at an annual-high clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CMG's 10-day call/put volume ratio of 1.36 ranks higher than all other readings taken in the past 52 weeks.
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