Buzz Stocks: Apple Inc., Aralez Pharmaceuticals Inc, and Summit Therapeutics PLC (ADR)

Today's stocks to watch in the news include Apple Inc. (NASDAQ:AAPL), Aralez Pharmaceuticals Inc (NASDAQ:ARLZ), and Summit Therapeutics PLC (ADR) (NASDAQ:SMMT)

Oct 4, 2016 at 9:59 AM
facebook twitter linkedin

U.S. stocks are sitting in positive territory so far today, as domestic markets look to follow their European counterparts higher. Among specific equities in focus are tech giant Apple Inc. (NASDAQ:AAPL), as well as biotechs Aralez Pharmaceuticals Inc (NASDAQ:ARLZ), and Summit Therapeutics PLC (ADR) (NASDAQ:SMMT).

  • AAPL is up 1.4% at $114.11, following the launch of its Apple Pay service in Russia, making Russia the 10th country to have access to the new mobile payment platform. AAPL currently sits up 8.4% so far in 2016, and in the option pits, calls have been hot over the last 10 weeks, with AAPL's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.78 sitting in the top 84% of all readings from the past 12 months. Of course, now looks like a great time to purchase near-term options, with Apple Inc.'s Schaeffer's Volatility Index (SVI) of 18% sitting lower than 93% of all other readings from the past year, suggesting option players are pricing in relatively minimal volatility expectations, even though the tech stock's Schaeffer's Volatility Scorecard (SVS) of 97 sits 3 points from an annual peak, showing that AAPL has tended to exceed volatility expectations over the past year.

  • ARLZ is popping today, currently up 12.6% at $5.68, after news that the biotech will acquire the U.S. rights to AstraZeneca plc's (ADR) (NYSE:AZN) beta-blocker for $175 million, plus royalties and up to an additional $48 million of milestone payments. Even with this pop, however, ARLZ is still down 4% so far in 2016, although the shares have been enjoying support from their 200-day moving average since mid-August. There's likely some short sellers kicking rocks after this news, however, with Aralez Pharmaceutical Inc's short interest up 60% in the last two reporting periods, now accounting for 8.8% of ARLZ's float.
  • SMMT is soaring this morning, currently up 113.1% at $18.43, after entering into a licensing agreement with Sarepta Therapeutics Inc (NASDAQ:SRPT) for $40 million, plus up to an additional $522 million and royalties. The agreement gives SRPT European rights to SMMT's utrophin modulator pipeline, and its lead Duchenne muscular dystrophy (DMD) drug, ezutromid. Today's move puts SMMT up 179% for the year, and at a new all-time high. Although Summit Therapeutics PLC (ADR) short interest is down 0.9% over the last reporting period, SMMT's shorted shares would take nearly a week to cover, at SMMT's average daily volume.

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