Sirius XM Can't Capitalize on Alexa, While Lipocine Shorts Shrug Off Drug Data

SIRI is holding steady above its 80-day after creating a double top on the charts earlier this month

Managing Editor
Jun 20, 2017 at 10:41 AM
facebook twitter linkedin

U.S. stocks are trading slightly lower this morning, after a strong performance yesterday. Among specific names on the move today are homebuilder Lennar Corporation (NYSE:LEN), satellite radio stock Sirius XM Holdings Inc. (NASDAQ:SIRI), and drugmaker Lipocine Inc (NASDAQ:LPCN). Here's a quick look at what's moving shares of LEN, SIRI, and LPCN.

Lennar Stock Jumps After Strong Profit and Guidance

Lennar stock is up 5% to trade at $55.23 -- near a new two-year high -- after the company's earnings report exceeded analysts' expectations. Today's rally is just more of the same for the homebuilder stock, which is up 28% year-to-date, and hit its previous annual high of $54.84 as recently as June 14. Since late 2016, the shares have been guided higher by their 50-day and 80-day moving averages.

Given the strong price action, it's no surprise to see analysts are upbeat on Lennar. Of the 12 brokerages covering LEN stock, seven rate it a "strong buy" or "buy."

Sirius XM Loses Pre-Market Momentum on Alexa News

Sirius XM stock is flat today at $5.24, with the stock unable to hold its pre-market gains following news that Alexa, Amazon's digital personal assistant, can now stream over 200 channels of SiriusXM satellite radio. SIRI stock has gained 18% year-to-date, but has lost some momentum since double-topping around $5.50 at the beginning of June. The stock's ensuing pullback has so far been supported by its 80-day moving average.

The options market isn't pricing in any big moves for Sirius stock anytime soon. SIRI has a Schaeffer's Volatility Index (SVI) of 22%, which ranks in the 7th annual percentile. This indicates that short-term options are pricing in significantly lower-than-usual volatility expectations.  

Lipocine Quickly Pares Post-Study Stock Gains

Lipocine stock is up 7.4% to trade at $4.32, after the company reported positive top-line results for LPCN 1021, its testosterone drug. Right out of the gate, LPCN rallied to an eight-month high of $5.14 -- near the site of its descending 320-day moving average -- but the stock has since pared those early gains considerably. This suggests the $4.50 level, site of the equity's year-to-date closing high, will continue to act as a technical ceiling.

Based on LPCN stock's rapid retreat from its morning highs today, it seems as though the shorts are firmly in control of this name. Short interest rose by 9% in the most recent reporting period to account for 13.3% of the security's float, or 10.8 times LPCN's average daily trading volume.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners