2 Stocks Swinging Higher on Trump Tariff News

MDGL stock, meanwhile, is slumping

Sep 18, 2018 at 2:00 PM
facebook X logo linkedin

Stocks are higher today as Wall Street brushes off the latest headlines in the U.S.-China trade spat. Drilling down on individual names making notable moves today, wearable tech firm Fitbit Inc (NYSE:FIT) and solar energy stock SunPower Corporation (NASDAQ:SPWR) are rising alongside the broader equities market, while liver disease specialist Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) is slumping. Here's a closer look at what's moving shares of FIT, SPWR, and MDGL.

Fitbit Options Bulls Eye a Bigger Breakout

Fitbit stock is up 5.5% to trade at $5.75, after the Trump administration excluded consumer gadgets -- including smartwatches -- from the newest round of tariffs. Nevertheless, the security is running out of steam near its 200-day moving average, which served as support earlier this month. Longer term, FIT shares are down 26% from their mid-June annual high of $7.79.

Today's pop has sparked a rush of activity in Fitbit's options pits, with roughly 30,000 calls and 9,700 puts on the tape -- almost four times what's typically seen at this point. Most active is the September 5 call, where it looks like new positions are being purchased for a volume-weighted average price (VWAP) of $0.71. If this is the case, breakeven for the call buyers at this Friday's close, when front-month options expire, is $5.71 (strike plus premium paid).

SunPower Stock Reclaims Key Trendline After Tariff News

Some solar cells will also be excluded from the Trump's latest import taxes, sending SunPower shares 15.5% higher at $7.60 -- pacing for their best day since Nov. 2.  Plus, SPWR stock appears comfortably on track to close north of its 50-day moving average for the first time since late May.

Options traders appear to be betting on even more upside through week's end. Amid accelerated volume -- nearly 15,400 options have traded, about 10 times the average intraday amount -- the September 6.50 call has seen the most action. All signs suggest these calls are being bought to open for a VWAP of $0.37, making at-expiration breakeven for the call buyers $6.87.

Viking Therapeutics Liver Drug Data Pressures MDGL Stock

Madrigal Pharmaceuticals shares are sinking today after rival Viking Therapeutics (VKTX) reported positive mid-stage data for its liver disease drug. MDGL stock is down 10% at $205.41, breaching long-term support atop its 120-day moving average. Nevertheless, the shares are still maintaining a 123.8% year-to-date gain, and are holding above the round $200 level.

Short sellers are likely breathing a sigh of relief during today's pullback, even with MDGL stock on the short-sale restricted list. Short interest surged 16.7% in the two most recent reporting periods to 1.2 million shares. These bearish bets represent 16.7% of the equity's available float, or 7.1 times the average daily pace of trading.


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI