Twitter, Delta Stocks Flirt with Fresh Highs

Analysts have yet to get behind TWTR stock despite its strong run

Josh Selway
Dec 14, 2017 at 1:56 PM
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The Dow earlier hit another record high, as investors react to a busy day of economic data. Among the names making big moves are social media stock Twitter Inc (NYSE:TWTR), airliner Delta Air Lines, Inc. (NYSE:DAL), and brokerage services provider Siebert Financial Corp. (NASDAQ:SIEB). Here's a quick look at what's moving shares of TWTR, DAL, and SIEB.

Call Options Popular as Twitter Stock Hits Fresh High

Twitter stock today touched an annual high of $23.24, and was last seen trading up 4.7% at $22.68 amid heavy volume. There's no clear catalyst for this price action, so for now it appears TWTR is simply extending its channel of higher highs and lows that it's enjoyed since mid-August. In the fourth quarter alone the shares have added close to 35%.

Options traders seem to be expecting more upside, too, since call volume is more than four times put volume today. Of course, that's nothing new. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows more than 64,438 call options have been bought to open during the past 10 days, compared to just 9,170 puts.

Analysts are staying bearish, however, as there is still only one brokerage firm that recommends buying Twitter, compared to 27 "holds" or worse. As such, upgrades could still be in store for the outperforming stock. 

Delta Sees 'Meaningful Savings' From Tax Reform

Delta stock is up 2.8% to trade at $55.13, earlier coming within 15 cents of an all-time high. Investors are reacting to news that the company placed a nearly $13 billion order with Boeing rival AirbusSE. Delta also said the proposed tax bill in congress would lead to "meaningful savings" that it can use to complete the funding of its pension plan. Today's price action brings DAL's one-month advance to 12.8%.

Not surprisingly, data from the ISE, CBOE, and PHLX shows the security has a 50-day call/put volume ratio of 3.06, which is only 1 percentage point from a 12-month high. It's a similar setup today, with call volume running at two times the expected pace.

SIEB Stock Explodes On Blockchain Announcement

Add Siebert Financial to the list of stocks connected to cryptocurrency, after the company announced it's partnering with Overstock.com (OTSK) to enhance its online trading presence, with plans to eventually offer blockchain and cryptocurrency trading. SIEB shares were last seen trading 63% higher at $8.40 as a result, hitting a 17-year high of $11.33 in the process. The equity has now added roughly 189% year-to-date.


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