Traders Sell the Tesla News; ANF Walks Away From Suitors

ClubCorp pops on Apollo buyout bid, while Abercrombie walks away from potential buyers

Managing Editor
Jul 10, 2017 at 10:37 AM
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U.S. stocks are slightly higher to start the week, as second-quarter earnings season looms. Among specific stocks on the move today are electric car name Tesla Inc (NASDAQ:TSLA), country club name ClubCorp Holdings Inc (NYSE:MYCC), and retailer Abercrombie & Fitch Co. (NYSE:ANF). Here's a quick look at what's moving shares of TSLA, MYCC, and ANF.

Model 3 Rollout Has Tesla In The News Again

Tesla stock is trading lower, down 1.9% to trade at $307.14, despite CEO Elon Musk unveiling the highly anticipated Model 3 over the weekend, with mass production set to begin later this year. Electric auto enthusiasts have already placed approximately half a billion dollars' worth of $1,000 deposits on the car, which carries a price tag of $35,000. Today's "sell on the news" scenario has Tesla back on the verge of bear-market territory, and the stock has suffered an early break below the 100-day moving average that cushioned last week's lows.

Options traders seem optimistic. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows TSLA with a 50-day call/put volume ratio of 1.17, which ranks in the 91st percentile of its annual range. 

ClubCorp Booms After Apollo Buyout Bid

ClubCorp Holdings is up 30% to trade at $17.07, after the golf course company was acquired by Apollo Global Management LLC for $1.1 billion in cash over the weekend. The deal values MYCC stock at $17.12 per share, a modest discount to the equity's Feb. 22 annual high of $17.60.

Today's news has triggered a massive share volume spike in MYCC, with over 14 million shares traded so far, compared to the previous 52-week high of 3.6 million. With 2.4 million MYCC shares sold short as of the most recent reporting period, it's quite likely that bears have beaten a hasty path to the exits today.

Abercrombie & Fitch Stock Gutted After Buyout Talks Abandoned

Abercrombie & Fitch stock is reeling, down 20.5% to trade at $9.67 -- just one penny above this morning's freshly tagged 17-year low -- after the company announced it has terminated discussions with potential buyers. Today's bear gap places ANF stock firmly in negative territory for 2017; in recent months, the equity's year-to-date breakeven level of $12 had provided support, even as the looming 200-day moving average effectively capped a couple of second-quarter rally attempts.

At the ISE, CBOE, and PHLX, options buyers have grown increasingly skeptical. ANF sports a 10-day put/call volume ratio of 3.32, which ranks in the 88th percentile of its annual range. What's more, 15 out of 16 brokerages covering ANF stock rate it a "hold" or "sell."

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