Red Dead Sales Lift TTWO Stock; Autodesk Gets Apple Boost

Weekly TTWO calls are popular

Josh Selway
Oct 30, 2018 at 2:15 PM
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Stocks are rallying higher today thanks to upbeat corporate earnings, with shares of Nike (NKE) and Coca-Cola (KO) leading the charge. Three names making notable moves on Wall Street are "Grand Theft Auto" maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO), hospice provider Amedisys Inc (NASDAQ:AMED), and engineering software specialist Autodesk, Inc. (NASDAQ:ADSK). Here's what's moving TTWO, AMED, and ADSK today.

"Red Dead" Earns Record Amount in First Weekend

TTWO is trading up 9.8% at $122.70 after the company said its "Red Dead Redemption 2" earned a record $725 million in its first three days. Wedbush analyst Michael Pachter suggests the stock will stay strong through the company's earnings release, which is scheduled for Wednesday, Nov. 7, and added that Take-Two Interactive will likely raise its guidance due to the game's success. Meanwhile, the equity is holding support at its 160-day moving average.

Most other analysts share Wedbush's enthusiasm, with 14 of 16 in coverage recommending to buy the stock. On the other hand, some options traders have been showing skepticism, based on the security's 50-day put/call volume ratio of 1.25 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), high enough to rank in the 96th annual percentile -- meaning TTWO options traders have been more bearish than normal. Today, though, apparent call buying in the weekly 11/2 series is taking place.

Amedysis Posts Strong Earnings

AMED shares are soaring today thanks to upbeat third-quarter earnings and an upgrade to "buy" at Benchmark. Looking back, Amedysis has cooled since touching an all-time high of $127.38 back on Oct. 1, finding support at the site of its early August bull gap. Even so, it's up 140% in the past 12 months.

In the meantime, there's been a lot of activity out of AMED short sellers. Short interest fell by a notable 38.3% in the last reporting period, but a healthy 3.2 days' worth of pent-up buying power still rests in the hands of short sellers, based on the average daily trading volume.

ADSK Gets Apple Bump

Apple today unveiled its new iPad Pro, which will feature Autodesk technology. However, after rising to $126.88 out of the gate, ADSK stock was last seen just 0.4% higher at $124.60. The chart looks putrid for the security, as it's lost 20% in the past month, barreling through the site of its mid-August bull gap near the $140 mark. At these levels, ADSK is hovering right near its year-over-year breakeven point.

In the options pits, near-term speculators have been more put-skewed than normal. This is according to Autodesk's Schaeffer's put/call open interest ratio (SOIR) of 1.10, which ranks in the 83rd annual percentile. This is due to heavy open interest at the front-month November 130 put, where 7,804 contracts reside, compared to just 3,430 at the next most popular strike.


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