AVGO, X, and WFC stocks are making notable moves on the charts today
The Dow is lower once again as traders digest headlines surrounding U.S. Secretary of State Rex Tillerson's visit to Russia. Among specific equities on the move this afternoon are chip stock Broadcom Ltd (NASDAQ:AVGO), steel giant United States Steel Corporation (NYSE:X), and banking concern Wells Fargo & Co (NYSE:WFC). Here's a quick look at what's moving shares of AVGO, X, and WFC.
Broadcom Options Traders Strike as Stock Sinks
AVGO stock is on pace to close below its 50-day moving average for the first time since early December, last seen 4% lower at $208.94, amid reports the company is the leading bidder for Toshiba's chip business. Still, Broadcom stock is up 18% in 2017, touching a record high of $227.75 about a month ago. It appears options traders are betting on a big bounce, too. Specifically, intraday call volume is at eight times the norm today, and Trade-Alert is highlighting a likely long call spread at the July 240 and 260 strikes.
China Concerns Crush United States Steel Stock
Steel stocks are getting hit hard today, due to concerns of overproduction in China. As such, X stock is down 9.6% at $31.37, earning a spot on the short-sale restricted list, and on pace for its fourth consecutive close below the 20-week moving average. On the other hand, U.S. Steel stock is holding above the $30-$31 range that's contained pullbacks since late November. Most analysts are bullish on X shares, with seven of 12 deeming them a "strong buy."
Wells Fargo Stock Hit with Downgrade
WFC stock is sharply lower ahead of the company's earnings release tomorrow morning, following a downgrade to "sell" from "hold" at Rafferty Capital. The shares were last seen 1.5% lower at $53.37, meaning they've now lost 11% since peaking near $60 on March 1. This might explain why short-term Wells Fargo & Co options traders are unusually put-skewed. WFC stock has a Schaeffer's put/call open interest ratio (SOIR) of 1.39, which is just 2 percentage points from an annual high.