Buzz Stocks: Eli Lilly and Co, Mondelez International Inc, and Yahoo! Inc.

Today's stocks to watch in the news include Eli Lilly and Co (LLY), Mondelez International Inc (MDLZ), and Yahoo! Inc. (YHOO)

Dec 15, 2016 at 10:45 AM
facebook twitter linkedin

U.S. stock are higher, as markets rebound from yesterday's Fed-induced sell-off. Among specific equities in focus today are drugmaker Eli Lilly and Co (NYSE:LLY), snack stock Mondelez International Inc (NASDAQ:MDLZ), and internet power Yahoo! Inc. (NASDAQ:YHOO). Here's a quick look at what's driving LLY, MDLZ, and YHOO.

  • LLY is up 3.1% at $69.79, after delivering an optimistic 2017 forecast, citing strong demand for its new drugs. Eli Lilly and Co CFO Derica Rice also expressed confidence in the financial commitments of the company through 2020, and said it could release up to 13 new drugs by the end of 2023. Despite today's rise, LLY still sits well below its November bear gap, and remains down more than 16% in 2016. Today's bounce should come as a boon to many near-term option traders, who have been especially call tilted as of late, with LLY sporting a Schaeffer's put/call open interest ratio (SOIR) of 0.39 -- a reading that sits just 4 percentage points from an annual peak.

  • MDLZ is trading 4.7% higher at $44.86, despite sources denying any knowledge of a rumored takeover offer by Kraft Heinz Co (NASDAQ:KHC). MDLZ shares are attempting to claw back into the black year-to-date, though several rally attempts have stalled in the $45-$46 region over the last 12 months. In the option pits, bullish betting has ramped up in recent weeks, with Mondelez International Inc's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing 2.05 calls bought to open for every put over the last two weeks of trading, a reading that sits in the 70th percentile of its annual range.

  • YHOO is once again at the center of a cybersecurity fiasco, with the internet company reporting a new data breach affecting over 1 billion users -- marking the biggest hack in history. This is the second major data breach Yahoo! Inc. has announced in the past several months, and could affect its agreement to sell its core internet business to Verizon Communications Inc. (NYSE:VZ) for $4.8 billion. YHOO is currently down 3.7% at $39.39, and now sits below its 160-day moving average for the first time since March. Still, the shares are up more than 50% from their February lows. Option bulls may be sweating today, with YHOO's 10-day call/put volume ratio at the ISE/CBOE/PHLX showing nearly 10 calls bought to open for every put over the last two weeks, a reading that sits higher than 98% of all others from the past 12 months.

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


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!