The Drug Stock Burning Option Bears; Plus, 2 Retailers In Retreat

Perrigo stock is on top of the NYSE, set to top its 200-day moving average for the first time in years

Aug 10, 2017 at 2:09 PM
facebook X logo linkedin


U.S. stocks are trading lower today, due to mounting tensions with North Korea and dismal retailer earnings. Among the retail stocks in the spotlight are Macy's (NYSE:M) and Dillard's, Inc. (NYSE:DDS), while specialty pharmaceutical company Perrigo Company plc Ordinary Shares (NYSE:PRGO) is getting attention after its own earnings report. Here's a quick look at what's moving shares of M, DDS, and PRGO.

Macy's Most Active Stock on NYSE

Despite reporting stronger-than-expected quarterly earnings and a smaller-than-anticipated drop in comparable-store sales this morning, Macy's stock reversed earlier pre-market gains to trade down 9.5% at $20.84, and earlier touched a nearly seven-year low of $20.65. The retail stock is the most active by volume on the New York Stock Exchange (NYSE) today, with more than 29 million shares exchanged. M has lost more than half its value since touching its 52-week high of $45.41 in late November, with recent breakout attempts thwarted by its 80-day moving average. 

Option buyers were upping the bearish ante ahead of earnings, as evidenced by the stock's 10-day put/call volume ratio of 1.05 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- in the 80th percentile of its annual range.

Dillard's Drops To Worst On NYSE After Earnings

Dillard's stock is down 15.5% to trade at $62, after reporting weaker-than-expected second-quarter sales -- ranking DDS as the worst percentage loser on the NYSE today. The drop extends Dillard's reputation as a big post-earnings swinger.

After touching a roughly 16-month high of $83.44 on July 31, DDS has retreated more than 26% to today's intraday low of $61.50 -- just above its 50-day moving average -- and is now back in the red year-to-date. While DDS shares are on the short-sale restricted list today, plenty of short sellers are likely cheering. Short interest represents more than 77% of the equity's total available float.

Perrigo Rallies to Top of Big Board

Better-than-expected earnings and an upwardly revised full-year profit outlook have Perrigo stock up 18.6% to trade at $78.77 -- moving the stock to the top spot of Big Board percentage gainers. After hitting a six-and-a-half-year low of $63.69 yesterday, PRGO is now set to close above its 200-moving average for the first time since September 2015.

Option buyers had quite the bearish appetite ahead of earnings, as evidenced by PRGO's 10-day put/call volume ratio of 5.82 on the ISE, CBOE, and PHLX -- ranking in the 99th percentile of its annual range. What's more, at PRGO's average daily trading volume, it would take nearly three weeks to buy back all the stock's shorted shares. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI