The Biotech Stock Set to Rally 150%; Amazon Goes for Third Straight Win

Zogenix's epilepsy treatment met its goals in a late-stage study

Sep 29, 2017 at 9:23 AM
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The last day of the third quarter is shaping up to be a down one for U.S. stocks. Among specific stocks in focus today are e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN), biotech Zogenix, Inc. (NASDAQ:ZGNX), and chicken specialist Tyson Foods, Inc. (NYSE:TSN). Here's a closer look at what's moving shares of AMZN, ZGNZ, and TSN. 

Amazon Stock Pointer Higher Despite Data Breach

Amazon stock is up slightly in pre-market trading, despite news of a data breach in the company's Whole Foods unit. AMZN shares settled at $956.40 yesterday, and another positive close would mark a third straight win. Looking closer, the $930-$940 area has provided solid resistance since early June, with the latter mark corresponding with a 38.2% Fibonacci retracement of Amazon's post-election low and high. 

All the while, options traders have remained bullish. International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) data shows a 10-day call/put volume ratio of 1.14 for the security, which is higher than 77% of all comparable readings over the past year. 

Zogenix Stock Spike Could Torch Options Traders

Zogenix stock is set to jump 147% at the open thanks to news of positive late-stage trial results for the company's epilepsy treatment. ZGNX closed at $12.88 yesterday, as it had been pulling back sharply from its 52-week high of $16.50 from Sept. 11. And options data suggest some traders were skeptical of the company's chances. Specifically, peak open interest sits at the October 10 put, and the major options exchanges confirm traders have bought to open positions here, betting on the shares to fall below $10 in the weeks ahead. 

Forecast, Cost-Savings Measures Lift TSN Stock

Tyson Foods last night raised its full-year outlook and announced a restructuring plan that could cut roughly 450 jobs. In late August, TSN shares bounced from the $62 level -- home to their 200-day moving average -- and were last seen trading at $65.45. But the $67 area looms overhead, a spot where the stock has stalled on several occasions during the past 12 months. Ahead of the open, the equity is up 5%. 

The security is already a favorite among the analyst bunch. By the numbers, five of eight brokerages have "strong buy" ratings for TSN, and its consensus 12-month price target is $72. 

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