Amazon Buzz Boosts Evine Live Stock; FCX Sinks After Earnings

Both CBI and FCX are seeing accelerated options trading today

Apr 24, 2018 at 3:02 PM
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Losses for the major U.S. equity indexes are accelerating, thanks to rising bond yields and negative earnings reactions for big-caps 3M (MMM) and Alphabet (GOOGL). While miner Freeport-McMoRan Inc (NYSE:FCX) is slumping alongside the broader stock market, construction firm Chicago Bridge & Iron Company N.V. (NYSE:CBI) and home shopping channel Evine Live Inc (NASDAQ:EVLV) are bucking the bearish bias. Here's a quick look at what's moving shares of FCX, CBI, and EVLV.

Copper Sales Pressured Freeport-McMoRan Earnings

Freeport-McMoRan said lower-than-anticipated copper sales applied pressure in the first quarter, with the mining firm reporting adjusted earnings of 46 cents on $4.87 billion in revenue -- both below estimates. The company also cut its full-year copper sales forecast. At last check, FCX was down 16.6% to trade at $15.70 -- the worst stock on the S&P 500 Index (SPX) -- but earlier found a foothold atop its 200-day moving average, which previously helped cushion the shares in September and November.

Against this backdrop, FCX options volume has exploded, with around 128,000 calls and 80,000 puts on the tape so far -- almost six times what's typically seen at this point in the day. Buy-to-open activity has been detected at the weekly 4/27 16.50-strike put, which would indicate expectations for bigger losses through expiration at this Friday's close.

CBI Options Bulls Bet on Bigger M&A Gains

Chicago Bridge & Iron shares were up more than 7% earlier, after suitor McDermott International (MDR) reported stronger-than-expected first-quarter profit and revenue. The company also said it met a key financing milestone in the proposed merger with CBI, with MDR shareholders expected to vote at a special meeting next Wednesday, May 2.

CBI stock has since pared these gains, but is still trading 3.1% higher at $13.80. The shares have seen volatile trading recently, but options traders today seem to be targeting even more M&A-related upside -- purchasing new positions at the weekly 5/4 14.50-strike call, the equity's most active option so far. The volume-weighted average price (VWAP) for the calls is $0.94, making breakeven at next Friday's close $15.44 (strike plus VWAP).

Evine Live Stock Continues to Rally Off Recent Lows

Evine Live stock is up 33.7% to trade at $1.08 -- near the top of the Nasdaq -- after an article in TechCrunch suggested Amazon could be interested in buying the QVC rival -- though nothing has been confirmed. Heading into today's trading, the shares had been in a channel of lower highs and lows since December, and bottomed at a two-year low of $0.76 on April 12.

Nevertheless, most analysts have been optimistic toward the media stock. While all four brokerages maintain a "buy" rating, the average 12-month price target of $1.90 sits in territory not seen since November 2016.


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