Buzz Stocks: Sears Holdings Corp, Fortress Biotech Inc, and Cempra Inc

Today's stocks to watch in the news include Sears Holdings Corp (NASDAQ:SHLD), Fortress Biotech Inc (NASDAQ:FBIO), and Cempra Inc (NASDAQ:CEMP)

Dec 29, 2016 at 9:25 AM
facebook twitter linkedin


U.S. stock futures are trading near fair value amid the latest round of economic data. Among specific equities in the spotlight today are retail stock Sears Holdings Corp (NASDAQ:SHLD), as well as biotechs Fortress Biotech Inc (NASDAQ:FBIO) and Cempra Inc (NASDAQ:CEMP). Here's a quick look at what's driving SHLD, FBIO, and CEMP.

  • SHLD is getting a boost in pre-market trading, adding 10.2% thanks to news the company obtained a credit facility from ESL Investments, a hedge fund run by CEO Edward Lampert. The announcement couldn't come at a better time for the stock, which has been trending lower for years, touching a 13-year low yesterday of $8, before closing at $8.18. On the other hand, the pending pop would obviously be bad news for the large number of traders that are betting against Sears Holdings Corp. For example, short sellers control more than two weeks' worth of buying power, based on SHLD's average daily trading volumes. 

  • FBIO is set to jump 37% at the open, after the company said a cancer patient is now in remission after being treated with a form of its CAR-T immunotherapy. The stock had been sliding ever since its April peak of $4.66, closing Wednesday at $2.29, but today's potential jump would put the shares back atop the $3 mark and their 200-day moving average. It wouldn't be surprising if positive analyst attention helped guide Fortress Biotech Inc higher, too, since only one brokerage firm is covering the stock at the moment. 

  • CEMP is on pace to lose nearly half its value this morning, after the Food and Drug Administration (FDA) rejected the company's pneumonia treatment, solithromycin. At $6.10, Cempra Inc has already lost 80% year-to-date, and today's potential decline could have option bulls kicking themselves. More specifically,almost five call options have been bought to open for every put during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). 

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!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners