9 Stocks Reaching An Inflection Point, With Bullish Options Sentiment

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Compiled by Eben Esterhuizen, CFA: The following is a list of stocks that are approaching an inflection point, based on moving average trends. For this article, we define an inflection point as the convergence between the 50-day and 200-day moving averages.

When these two moving averages cross, it often represents a shift in investor sentiment. If the 50-day SMA moves above the 200-day SMA (bullish), it's called a "Golden Cross" signal. If, on the other hand, the 50-day SMA crosses below the 200-day SMA (bearish), it's called the "Death Cross".

To compile this list, we started with a universe of stocks that have seen the 50-day SMA cross above the 200-day moving average (bullish signal). We then narrowed down the list by only focusing on stocks that have a large number of open call option positions relative to put option positions (i.e. bullish options market sentiment)

Options traders seem to think there's more upside to these names. What do you think? Full details below.

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The list has been sorted by the Put/Call ratio.

1. Acxiom Corporation (ACXM): Information Technology Services Industry. Market cap of $1.33B. SMA50 at $16.65 vs. SMA200 at $16.48 (current price at $17.52). Call open interest at 1,511 contracts vs. put open interest at 118 contracts (Put/Call ratio at 0.08). Short float at 2.82%, which implies a short ratio of 4.13 days. The stock has gained 34.58% over the last year.

2. AEGON N.V. (AEG): Life Insurance Industry. Market cap of $10.68B. SMA50 at $6.19 vs. SMA200 at $6.15 (current price at $6.4). Call open interest at 1,069 contracts vs. put open interest at 116 contracts (Put/Call ratio at 0.11). Short float at 0.07%, which implies a short ratio of 1.36 days. The stock has lost -19.15% over the last year.

3. Emergency Medical Services Corp. (EMS): Medical Practitioners Industry. Market cap of $2.19B. SMA50 at $52.82 vs. SMA200 at $52.67 (current price at $49.6). Call open interest at 1,312 contracts vs. put open interest at 172 contracts (Put/Call ratio at 0.13). Short float at 4.41%, which implies a short ratio of 5.55 days. The stock has lost -3.72% over the last year.

4. Allscripts Healthcare Solutions, Inc. (MDRX): Healthcare Information Services Industry. Market cap of $2.65B. Call open interest at 35,801 contracts vs. put open interest at 5,086 contracts (Put/Call ratio at 0.14). Short float at 2.74%, which implies a short ratio of 1.16 days. The stock has lost -15.33% over the last year.

5. Brocade Communications Systems, Inc. (BRCD): Data Storage Devices Industry. Market cap of $2.56B. SMA50 at $5.9 vs. SMA200 at $5.72 (current price at $5.72). Call open interest at 495,677 contracts vs. put open interest at 75,064 contracts (Put/Call ratio at 0.15). Short float at 5.88%, which implies a short ratio of 1.52 days. The stock has lost -32.17% over the last year.

6. Fortress Investment Group LLC (FIG): Asset Management Industry. Market cap of $2.25B. SMA50 at $4.14 vs. SMA200 at $4.10 (current price at $4.86). Call open interest at 37,351 contracts vs. put open interest at 6,373 contracts (Put/Call ratio at 0.17). Short float at 1.89%, which implies a short ratio of 1.46 days. The stock has gained 14.32% over the last year.

7. MasTec, Inc. (MTZ): Heavy Construction Industry. Market cap of $1.09B. SMA50 at $11.68 vs. SMA200 at $11.59 (current price at $14.43). Call open interest at 2,248 contracts vs. put open interest at 450 contracts (Put/Call ratio at 0.2). Short float at 8.12%, which implies a short ratio of 5.26 days. The stock has gained 15.63% over the last year.

8. Ansys, Inc. (ANSS): Technical & System Software Industry. Market cap of $4.34B. SMA50 at $44.34 vs. SMA200 at $43.58 (current price at $48.47). Call open interest at 3,475 contracts vs. put open interest at 769 contracts (Put/Call ratio at 0.22). Short float at 3%, which implies a short ratio of 4.96 days. The stock has gained 16.01% over the last year.

9. PSS World Medical Inc. (PSSI): Medical Equipment Wholesale Industry. Market cap of $1.26B. SMA50 at $21.7 vs. SMA200 at $21.62 (current price at $21.49). Call open interest at 5,663 contracts vs. put open interest at 1,377 contracts (Put/Call ratio at 0.24). Short float at 15.67%, which implies a short ratio of 9.74 days. The stock has gained 9.75% over the last year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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