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.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners