Buzz Stocks: Morgan Stanley, Halliburton Company, and Rite Aid Corporation

Today's stocks to watch in the news include Morgan Stanley (NYSE:MS), Halliburton Company (NYSE:HAL), and Rite Aid Corporation (NYSE:RAD)

Oct 19, 2016 at 9:47 AM
facebook twitter linkedin


U.S. stocks are moving higher on earnings wins. Among equities in focus today are bank stock Morgan Stanley (NYSE:MS), oil-and-gas giant Halliburton Company (NYSE:HAL), and pharmacy chain Rite Aid Corporation (NYSE:RAD). Here's a quick look at what's driving MS, HAL, and RAD today.

  • MS is trading 1.4% higher at $32.78, after beating analysts' earnings expectations -- just the latest big bank to report solid earnings. MS has rallied 55% since touching a two-year low of $21.15 in February, with recent dips contained by its 50-day moving average. In the option pits, near-term traders have been slightly more call-skewed than usual as of late, with Morgan Stanley's Schaeffer's put/call open interest ratio (SOIR) of 1.16 sitting in just the 35th percentile of its annual range.

  • HAL is 3.3% higher at $48.60 -- and fresh off an annual high of $48.80 -- after delivering a surprise earnings win, thanks to the company's cost-cutting measures and an expected rise in oil prices. HAL has been having a good 2016 so far, up over 43% since the beginning of the year, and now above a recent roadblock in the $46-$47 area. HAL sports a SOIR of 1.37, which sits at an annual peak, indicating near-term option players are more put-skewed than at any other time during the past 12 months.

  • RAD is trading 3.1% lower at $6.80, as its potential merger with Walgreens Boots Alliance Inc (NASDAQWBA) hangs in the balance, amid reports that Kroger Co (NYSE:KR) may not buy the 650 stores required to satisfy anti-trust regulations. RAD is now down more than 13% so far this year, and 24% off WBA's proposed buyout price of $9 per share. Some option traders may be hoping for a breakdown, though, with RAD's SOIR of 1.21 sitting higher than 84% of all other readings from the past year, indicating near-term traders have been more put-skewed than usual.

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

 

  

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners