The Drug Stock Down 60% After FDA Rejection

ACRX stock has gone from an annual high Wednesday to within pennies of an annual low

Managing Editor
Oct 12, 2017 at 10:05 AM
facebook X logo linkedin

U.S. stocks are trading slightly lower this morning, as third-quarter earnings season commences. Among the stocks making moves this morning are banking institution and blue-chip powerhouse JPMorgan Chase & Co (NYSE:JPM), pizza restaurant chain Domino's Pizza, Inc. (NYSE:DPZ), and drugmaker AcelRx Pharmaceuticals Inc (NASDAQ:ACRX). Here's a closer look at what's moving shares of JPM, DPZ, and ACRX.

JPMorgan Stock Dips After Earnings

While JPMorgan Chase reported better-than-expected third-quarter earnings, the bank's bond trading revenue was weaker than forecast. The blue-chip stock was last seen trading fractionally lower at $96.67, likely to the dismay of recent options traders. JPM's Schaeffer's put/call open interest ratio (SOIR) of 0.66 ranks in only the 7th percentile of its annual range, which suggests that near-term options traders have rarely been more call biased in the past 12 months. Still, JPM stock has added more than 12% in 2017, and touched a record high of $97.64 on Oct. 6.

DPZ Stock Takes a Breather After Same-Store Sales Miss

Shares of Domino's Pizza have dipped 2.4% to $204.20, but seem to have found support at their 10-day and 20-day moving averages. While the pizza company reported better-than-expected third-quarter earnings, same-store sales growth fell short of expectations. Prior to today, Domino's stock had been on a tear, rallying roughly 20% from its August lows amid a sea of skepticism. Just five of 15 analysts consider DPZ stock worthy of a "buy" or better rating, leaving the door wide open for upgrades if the equity resumes its recent ascent.

ACRX Stock Flatlines After FDA Rejection

ACRX shares have taken a major hit after the Food and Drug Administration (FDA) rejected the firm's opioid painkiller, Dsuvia. Just one day after touching an annual high of $5.75, the drug stock was last seen 60% lower at $2.15 -- within pennies of a new low. Some recent option buyers are likely cheering the news. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ACRX sports a 50-day put/call volume ratio of 0.43, ranking in the 94th percentile of its annual range, suggesting options traders have bought to open puts over calls at a faster-than-usual clip during the past 10 weeks.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI