Surging E-Sports Stock Stalls Near Key Resistance

Call buying is hot as MAXR stock climbs the charts

May 3, 2019 at 3:03 PM
facebook twitter linkedin

The U.S. equities market is heading for a daily win, though the Dow still seems poised for its second straight weekly loss. Among individual stocks making notable moves today are e-sports name Super League Gaming Inc (NASDAQ:SLGG), implantable eye lens specialist STAAR Surgical Company (NASDAQ:STAA), and space technology firm Maxar Technologies Inc (NYSE:MAXR). Here's a quick look at what's moving the shares of SLGG, STAA, and MAXR.

Street Fighter Collaboration Boosts Super League Gaming

Super League Gaming stock is near the top of the Nasdaq, up 22.9% to trade at $8.06, after the company teamed up with Japan's Capcom to collaborate on creating Street Fighter V: Arcade Edition amateur e-sports competitions and leagues. Although SLGG shares are on track for their best day ever, they ran out of steam near familiar resistance in the $8.40 region, and remain well below the firm's late-February initial public offering (IPO) price of $11.

Analysts remain optimistic. While all three covering brokerages maintain a "buy" or better rating on SLGG stock, the average 12-month price target of $15 is an 87.5% premium to current trading levels.

STAAR Surgical Sinks After FDA Decision

The U.S. Food and Drug Administration (FDA) failed to approve a premarket application for STAAR Surgical's implantable lens for nearsightedness, saying it lacked data supporting its safety and effectiveness. In reaction, STAA stock is down 11% at $25.06, pacing for its fourth straight daily loss, and a 24% weekly drop -- its biggest weekly decline since May 2016.

Short interest on the stock surged 17.8% in the two most recent reporting periods to 2.05 million shares -- representing 7% of the equity's float, or 6.5 times the average daily pace of trading. These bears are sidelined today, though, with STAA on the short-sale restricted list.

Maxar Technologies Trades Near Top of the Big Board

Maxar Technologies stock is trading near the top of the New York Stock Exchange (NYSE) this afternoon, boosted by news the company's insurers agreed to cover a $183 million claim related to a failed satellite orbit in January. Today's pop puts a small dent in the equity's 85% year-over-year deficit, but MAXR is still struggling below the $6.50 region -- near an early January bear gap.

Options traders are betting on even more upside, though. With about 75 minutes left in the session, 2,252 MAXR options are on the tape -- eight times what's typically seen. The May 7.50 call is most active, and it looks like new positions are being purchased here. The last time the equity closed above $7.50 on a weekly basis was Jan. 4.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners