Blockchain Deal Sparks Rally for Penny Stock

OTEX reported better-than-expected fiscal second-quarter earnings

Managing Editor
Feb 1, 2018 at 3:06 PM
facebook twitter linkedin


U.S. stocks are mixed this afternoon, as the major equity indexes struggle to start the new month on a positive note. Among the stocks making notable moves today are game developer The9 Limited (NASDAQ:NCTY), medical device concern ReWalk Robotics Ltd. (NASDAQ:RWLK), and software company Open Text Corp. (NASDAQ:OTEX). Here's a closer look at what's moving shares of NCTY, RWLK, and OTEX today.

NCTY Surges Higher on Blockchain Partnership

The9 stock is up 8% at $0.89 at last check, and just off a fresh intraday high of $1.02. The surge higher was prompted by the China-based game developer's new partnership with Singapore's C&I on the development of blockchain technology to distribute solar energy. NCTY is now up 62% from its Jan. 2 low of $0.55, but the stock has retreated from an earlier intraday surge above its 200-day moving average -- which was a formidable layer of resistance during the second half of 2017.

RWLK Gains on German Reimbursement Nod

ReWalk Robotics stock is trading up 4.6% at $1.15 after receiving a nod from Germany's national health insurance agency to reimburse its ReWalk Personal 6.0 System. This was a much-needed lift for the stock, which touched a fresh low of $1.05 during yesterday's trading. As a result, RWLK is pacing for a rare close above its 50-day moving average. Despite the equity's long-term slump, analyst sentiment is bullish, with four out of five carrying "buy" or "strong buy" recommendations.

Open Text Stock Soars After Better-Than-Expected Earnings

Shares of OTEX are soaring, up 15% at $39.53, after the software concern reported better-than-expected fiscal second-quarter earnings last night. In response, brokerage firms issued no fewer than six price-target raises, with the most notable coming from the National Bank of Canada, to $50 from $45. 

Just as analyst sentiment has been bullish in recent weeks -- with four out of five following the stock carrying "strong buy" recommendations -- options traders have been optimistic, as well. OTEX's Schaeffer's put/call open interest ratio (SOIR) of 0.21 is docked below 97% of comparable readings taken in the past year. This low reading suggests that short-term speculators have rarely been more call-skewed toward the stock during the past 12 months.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners