ANF Options Volume Peaks Post-Earnings; Penny Stock Soars

BBW blamed Brexit for its weak results

Nov 29, 2018 at 3:02 PM
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The U.S. stock market is trading on both sides of breakeven today -- last seen higher -- as Wall Street follows headlines surrounding President Donald Trump and this weekend's G-20 summit. Among individual stocks making notable moves are retailers Abercrombie & Fitch Co. (NYSE:ANF) and Build-A-Bear Workshop, Inc. (NYSE:BBW), as well as addiction specialist Adial Pharmaceuticals Inc (NASDAQ:ADIL). Here's a quick look at what's moving the shares of ANF, BBW, and ADIL.

ANF Stock Eyes Best Day in a Year After Earnings

Abercrombie & Fitch stock is cruising toward a sixth straight win and its best day in a year, after the retailer reported blowout third-quarter earnings and revenue, and gave an upbeat same-store sales forecast for the holiday season. At last check, ANF shares are up 21.1% to trade at $20.74, earlier running out of steam near $22 -- a former layer of support that marked the equity's late-August post-bear gap levels.

The surge has sparked a rush of activity in ANF's options pits, with roughly 20,000 calls and 25,000 puts on the tape -- 10 times the average intraday pace and total volume at a new annual peak. Most active is the December 22 put, where Trade-Alert suggests some of the activity is tied to stock. Elsewhere, speculators may be purchasing new positions at the weekly 11/30 20-strike and 22-strike calls, betting earnings-induced tailwinds will keep the shares rallying through tomorrow's close.

Build-A-Bear Stock Skims New Low

Build-A-Bear reported a wider-than-expected third-quarter loss and revenue that fell short, while also cutting its full-year revenue forecast -- pointing to Brexit uncertainty and new European privacy laws as causes for the weak numbers. In reaction, BBW shares are down 12% at $6.48, pacing toward their highest one-day drop May 31. The equity hit a five-year low of $6.06 earlier, and is now 30% lower year-to-date.

Short sellers have been in the driver's seat on BBW stock. Short interest jumped 7.2% in the two most recent reporting periods 780,000 shares. This accounts for 5.6% of the equity's available float, or 13.2 times the average daily pace of trading.

Adial Pharmaceuticals Stock Soars Above New Trendline

Adial Pharmaceuticals said it is establishing a scientific advisory board to be headed by alcohol use disorder (AUD) specialist Giovanni Addolorato. The penny stock is reacting favorably, up 122% to trade at $2.93. This marks rare upside for a stock that's trading well below its late-July initial public offering (IPO) of $5 per share, though ADIL is set for its inaugural close above the newly formed 80-day moving average.

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