Buzz Stocks: Lockheed Martin Corporation, Aerie Pharmaceuticals Inc, and Deutsche Bank AG

Today's stocks to watch in the news include Lockheed Martin Corporation (NYSE:LMT), Aerie Pharmaceuticals Inc (NASDAQ:AERI), and Deutsche Bank AG (NYSE:DB)

Dec 23, 2016 at 9:23 AM
facebook twitter linkedin

U.S. stock futures are trading below fair value ahead of the long holiday weekend. Among specific equities in the spotlight today are aerospace company Lockheed Martin Corporation (NYSE:LMT), biotech stock Aerie Pharmaceuticals Inc (NASDAQ:AERI), and German lender Deutsche Bank AG (NYSE:DB). Here's a quick look at what's driving LMT, AERI, and DB.

  • LMT is slumping in pre-market trading, falling 1.9%, after President-elect Donald Trump tweeted he has approached Boeing Co (NYSE:BA) for prices on a jet similar to the Lockheed's F-35 -- the second time this month he's criticized the company on Twitter. While the stock has cooled since hitting an all-time high of $269.90 earlier this month, it remains 16.4% higher year-to-date, and comfortably above its rising 200-day moving average at $252.80. Should the Trump-induced headwinds fall to the wayside and Lockheed Martin Corporation extend its long-term rally, an unwinding of near-term put positions could provide an extra boost. For example, LMT's Schaeffer's put/call open interest ratio (SOIR) is 1.66, putting it in the high 87th annual percentile. 

  • AERI has given back 6.5% in electronic trading, after the company announced the manufacturing facility for its glaucoma treatment, Rhopressa, won't be ready for a Food and Drug Administration (FDA) inspection. Aerie Pharmaceuticals Inc will now have to resubmit its new drug application sometime next year. Looking back, the stock enjoyed a huge bull gap back in September, helping guide it to record highs and a nearly 53% year-to-date advance, last seen at $37.20. Considering these gains, it's not surprising to see a huge bullish bias among analysts. At the moment, all nine brokerage firms covering AERI recommend buying the stock.  

  • DB is on the rise this morning, on news the company settled with the Justice Department for $7.2 billion -- far below what was expected. The stock has performed well recently, jumping almost 66% since its late-September all-time low of $11.19 to trade at $18.54. Meanwhile, Deutsche Bank AG options traders have been buying to open calls over puts. This is according to DB's 10-day call/put volume ratio of 1.07 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- a reading that lands in the 84th annual percentile. 

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


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners