Buzz Stocks: Honeywell International Inc., ArcelorMittal SA (ADR), and Silicon Motion Technology Corp. (ADR)

Today's stocks to watch in the news include Honeywell International Inc. (NYSE:HON), ArcelorMittal SA (ADR) (NYSE:MT), and Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO)

Oct 7, 2016 at 10:21 AM
facebook twitter linkedin

U.S. stocks are lower this morning, as traders weigh a disappointing September jobs report against hawkish comments from one Fed official. Among specific equities in focus are aircraft manufacturer Honeywell International Inc. (NYSE:HON), steel stock ArcelorMittal SA (ADR) (NYSE:MT), and semiconductor firm Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO).

  • HON is down 7.5% at $106.90, after the company downwardly revised the upper end its full-year forecast. Heading into today's session, HON was up 15% year-over-year, but has more recently been rejected in the $116-$117 region several times since its late-July post-earnings slide. Amid relatively low absolute volume, options traders have shown a clear preference for puts over calls in the last two weeks. Specifically, the stock's 10-day put/call volume ratio of 17.17 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 97% of all other readings taken in the past year.

  • MT is up 3.3% at $6.34, following news the European Union (EU) imposed higher tariffs on Chinese steel imports in an effort to reduce competition for EU steelmakers. Year-to-date, MT has more than doubled, although the $6.50 region has recently emerged as a ceiling for the shares. Now appears to be an opportune time for options buyers to strike on ArcelorMittal SA, too. The stock's Schaeffer's Volatility Index (SVI) of 42% is at an annual low, indicating premium on the stock's near-term options is pricing in the lowest volatility expectations of the past 12 months.

  • SIMO is up 5.1% at $54.01, after the integrated circuit specialist raised its third-quarter revenue outlook. SIMO has been on a tear over the last 12 months, tacking 88% year-over-year, and is set to finish above its 10-week moving average for the first time since early September. Analysts are optimistic, too. Of the 11 brokerage firms covering Silicon Motion Technology Corp., nine maintain a "buy" or better rating.

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


Special Offers from Schaeffer's Trading Partners