Affiliated Managers, Array Biopharma, Rite Aid Stocks Moving Today

AMG, ARRY, and RAD are among the stocks on the move today

Jan 30, 2017 at 10:32 AM
facebook twitter linkedin

U.S. stocks are down sharply following a controversial immigration ban by the Trump administration. Among specific equities in focus today are financial firm Affiliated Managers Group, Inc. (NYSE:AMG), drugmaker Array Biopharma Inc (NASDAQ:ARRY), and pharmacy stock Rite Aid Corporation (NYSE:RAD). Here's a quick look at what's moving AMG, ARRY, and RAD.

Affiliated Managers Pops Post-Earnings

AMG is up 2.3% at $147.80, following an upbeat earnings report that included an increase to the company's share buyback authorization, as well as the initiation of a cash dividend. That said, the stock has been churning in the $140-$150 range since mid-December. If options traders have their druthers, AMG will break out of its current consolidation pattern. Nearly 10 calls 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) -- with the corresponding call/put volume ratio of 9.99 ranking 1 percentage point from a 12-month peak.

Downgrade Drops Array Biopharma

ARRY has sunk 7% to $10.41, after Leerink downgraded its rating to "market perform" from "outperform," but raised its price target to $11 from $9. Nonetheless, the stock has blasted off since late September, nearly tripling in value. Perhaps that explains why short-term options traders are extremely call-skewed, based on ARRY's Schaeffer's put/call open interest ratio (SOIR) of 0.07 -- registering below 98% of all readings from the past year. Similar optimism is echoed by analysts, today notwithstanding.

Rite Aid Reels on Reduced Walgreens Offer

RAD has gapped 15% lower at $5.89, landed on the short-sale restricted list, and hit a two-year low of $5.70. Pressuring the stock is the decision of Walgreens Boots Alliance (NASDAQ:WBA) to slash its offer price by at least $2 billion due to regulatory hurdles. Meanwhile, options traders have been more bearish than usual in recent months. RAD has racked up a 50-day ISE/CBOE/PHLX put/call volume ratio of 0.93 -- just 10 percentage points from a 52-week high.

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check

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