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Apple Chip Buzz Sinks Intel Stock; Citron Takes Aim at Wayfair

SLS is outperforming on the Nasdaq today

Apr 2, 2018 at 3:16 PM
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The U.S. stock market is spiraling at the start of the second quarter, as the tech rout intensifies. Among stocks making notable moves are blue-chip chipmaker Intel Corporation (NASDAQ:INTC), retailer Wayfair Inc (NYSE:W), and cancer treatment specialist Sellas Life Sciences Group Inc (NASDAQ:SLS). Here's a quick look at how shares of INTC, W, and SLS are trading today.

INTC Stock Retreats to Key Technical Level

Intel is the worst Dow stock so far today, down 5.9% at $49.01, after Bloomberg reported Apple will start using its own chips in Macs as soon as 2020. While the shares have shed nearly 9% since hitting a 17-year high of $53.78 on March 13, they are finding a foothold near $47 -- a region that contained an early March pullback -- while just below here is the year-to-date breakeven level at $46.16.

Options traders may be bracing for even bigger losses over the next few weeks. The April 40 put is home to peak open interest of 63,078 contracts. While the bulk of the positions were initiated back on Jan. 12 when INTC was trading near $43.25, it's unclear whether these puts were bought or sold. However, data from the major options exchanges confirms at least some buy-to-open activity here, meaning traders are betting on a move below $40 by front-month options expiration at the close on Friday, April 20.

Citron Research Thinks Wayfair Share Price Will Be Cut in Half

Citron Research took aim at Wayfair stock earlier, tweeting the retailer is the "real tax avoider" -- referencing President Donald Trump's tweets about Amazon (AMZN) -- and set a short-term price target of $30. In reaction, W shares have plunged 7.2% to trade at $62.18. The security is now down more than 29% from its mid-March high at $87.75, and on track to close below its 320-day moving average for just the second time since March 2017.

The skepticism has picked up in the options pits, too. Puts are trading at three times what's typically seen at this point in the day, with traders possibly buying to open new positions at the weekly 4/6 60- and 61.50-strike put. W hasn't closed below either strike on a weekly basis since last May.

Sellas Life Sciences Stock Soars to the Top of the Nasdaq

Sellas Life Sciences Group is the best Nasdaq stock in intraday trading. After being halted earlier, the drug shares were last seen up 157.1% at $8.85, after the biotech reported positive mid-stage data for its breast cancer combination treatment. The shares are now up 3.5% year-to-date, and short sellers could be fueling some of today's upside. Short interest surged 71.2% in the most recent reporting period to 220,000 shares -- a record high.

 
 

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