Buzz Stocks: Deutsche Bank AG (USA), Twitter Inc, and Depomed Inc

Today's stocks to watch in the news include Deutsche Bank AG (USA) (NYSE:DB), Twitter Inc (NYSE:TWTR), and Depomed Inc (NASDAQ:DEPO)

Sep 16, 2016 at 9:24 AM
facebook twitter linkedin

Dow futures are lower, as traders digest the latest inflation data to hit the Street ahead of next week's Fed meeting. Among specific equities in focus are financial firm Deutsche Bank AG (USA) (NYSE:DB), social media stock Twitter Inc (NYSE:TWTR), and generic drugmaker Depomed Inc (NASDAQ:DEPO).

  • Shares of DB are bracing for a 9% plunge out of the gate, after the German bank said it has "no intent" to pay a $14 billion settlement to the U.S. Justice Department over civil claims tied to a mortgage-backed securities investigation. Today's projected price action is just more of the same for DB stock, which has shed half its value year-over-year, based on last night's close at $14.76. Options traders, however, have been initiating long calls over puts at a rapid-fire rate in recent weeks. Deutsche Bank AG's 10-day call/put volume ratio of 1.80 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks just 9 percentage points from a 52-week peak.

  • After announcing the deal in April, TWTR's first live-stream of a Thursday night NFL game has been met with applause both on and off Wall Street. Specifically, shares of TWTR are up 3.3% in electronic trading, after closing Thursday at $18.30. Nevertheless, the stock remains a long-term laggard -- with recent breakout attempts halted in the key $20-$21 range -- down more than 33% in the past 12 months. Short sellers, meanwhile, have been cashing out amid this slide. Short interest dropped by nearly 9% in the latest two-week reporting period, but still accounts for a healthy 8.7% of Twitter Inc's available float.

  • DEPO is up 13% ahead of the bell, after Reuters reported the company is preparing to put itself up on the auction block -- a move likely encouraged by activist investor Starboard Value LP -- after rejecting a hostile takeover bid from Horizon Pharma PLC (NASDAQ:HZNP) late last year. On the charts, the stock has tacked on 73% since hitting an annual low of $12.25 in late March, thanks to several big bounces off its rising 80-day moving average, and settled last night at $21.24. Not everyone is convinced the equity will sustain this momentum, though. Short interest surged 13.6% in the most recent reporting period, and now accounts for 26.2% of Depomed Inc's available float. Considering it would take nearly three weeks to cover these shorted shares, at DEPO's average pace of trading, the equity could get an additional boost from a round of short covering.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.


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