Debt Stalemate: S&P 500 Stocks With Bearish Options Sentiment

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(List compiled by Becca Lipman. Options Data sourced from Schaeffer's, all other data sourced from Finviz.)

It seems that no matter which way this debt crisis turns out, America's in a financial mess. The real question is wether we'll be facing more trouble in the short or long term...

USA's less-than optimistic future is best summed up by Associated Press authors Paul Wiseman and Chistopher S. Rugaber:

"Failing to raise the federal borrowing limit would force the government to slash spending immediately and possibly cause a default, frightening financial markets and sending interest rates up.

"If Washington reaches a deal and does raise the limit, it will probably include long-term spending cuts. The cuts would withdraw government stimulus at a time of weak economic growth and damage the already feeble recovery, at least in the short term."

Thus far economy has been making a slow and staggering recovery since the recession-turned-economic-slowdown. Spending cuts, some speculate, will very likely hinder than progress even further, possibly even reversing it and throwing the economy back into a recession. 

In light of this we wanted to get a current gauge of investor sentiment. To do so, we list below the S&P 500 stocks with the biggest increase in their Put/Call ratios over the last two weeks (i.e. bearish options sentiment).

Use the list and data below as a starting point for your own analysis. 

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List sorted by Put/call ratio. 

1. Robert Half International Inc. (RHI): Staffing & Outsourcing Services Industry. Market cap of $4.02B. Current price at $26.95. Current Put/Call ratio at 6.64 vs. previous Put/Call ratio at 0.8. This implies a 730.00% change over the last ten trading days (from 7/18 - 7/29). The stock is a short squeeze candidate, with a short float at 9.78% (equivalent to 7.8 days of average volume). It's been a rough couple of days for the stock, losing 6.71% over the last week.

2. Unum Group (UNM): Accident & Health Insurance Industry. Market cap of $7.51B. Current price at $24.24. Current Put/Call ratio at 3.56 vs. previous Put/Call ratio at 0.62. This implies a 474.19% change over the last ten trading days (from 7/18 - 7/29). The stock has gained 8.54% over the last year.

3. Kimco Realty Corporation (KIM): REIT Industry. Market cap of $7.88B. Current price at $18.85. Current Put/Call ratio at 1.66 vs. previous Put/Call ratio at 0.3. This implies a 453.33% change over the last ten trading days (from 7/18 - 7/29). It's been a rough couple of days for the stock, losing 6.26% over the last week.

4. DeVry Inc. (DV): Education & Training Services Industry. Market cap of $4.27B. Current price at $61.06. Current Put/Call ratio at 0.99 vs. previous Put/Call ratio at 0.39. This implies a 153.85% change over the last ten trading days (from 7/18 - 7/29). Relatively low correlation to the market (beta = 0.51), which may be appealing to risk averse investors. It's been a rough couple of days for the stock, losing 5.83% over the last week.

5. Clorox Corporation (CLX): Housewares & Accessories Industry. Market cap of $9.55B. Current price at $70.84. Current Put/Call ratio at 0.97 vs. previous Put/Call ratio at 0.43. This implies a 125.58% change over the last ten trading days (from 7/18 - 7/29). The stock has gained 14.01% over the last year.

6. Parker Hannifin Corporation (PH): Industrial Equipment & Components Industry. Market cap of $12.81B. Current price at $77.73. Current Put/Call ratio at 1.15 vs. previous Put/Call ratio at 0.52. This implies a 121.15% change over the last ten trading days (from 7/18 - 7/29). The stock is currently stuck in a downtrend, trading -10.18% below its SMA20, -10.33% below its SMA50, and -10.13% below its SMA200. It's been a rough couple of days for the stock, losing 9.64% over the last week.

7. The Sherwin-Williams Company (SHW): General Building Materials Industry. Market cap of $8.20B. Current price at $76.65. Current Put/Call ratio at 1.67 vs. previous Put/Call ratio at 0.82. This implies a 103.66% change over the last ten trading days (from 7/18 - 7/29). The stock is a short squeeze candidate, with a short float at 6.7% (equivalent to 5.26 days of average volume). The stock is currently stuck in a downtrend, trading -7.06% below its SMA20, -7.88% below its SMA50, and -5.39% below its SMA200. The stock has gained 13.7% over the last year.

8. Coca-Cola Enterprises Inc. (CCE): Beverages Industry. Market cap of $9.14B. Current price at $28.21. Current Put/Call ratio at 1.04 vs. previous Put/Call ratio at 0.55. This implies a 89.09% change over the last ten trading days (from 7/18 - 7/29). It's been a rough couple of days for the stock, losing 5.73% over the last week.

9. Weyerhaeuser Co. (WY): REIT Industry. Market cap of $10.77B. Current price at $19.77. Current Put/Call ratio at 1.69 vs. previous Put/Call ratio at 0.91. This implies a 85.71% change over the last ten trading days (from 7/18 - 7/29). The stock is a short squeeze candidate, with a short float at 5.05% (equivalent to 5.37 days of average volume). The stock is currently stuck in a downtrend, trading -8.43% below its SMA20, -6.83% below its SMA50, and -5.37% below its SMA200. It's been a rough couple of days for the stock, losing 9.87% over the last week.

10. Hasbro Inc. (HAS): Toys & Games Industry. Market cap of $5.39B. Current price at $39.21. Current Put/Call ratio at 1.85 vs. previous Put/Call ratio at 1.04. This implies a 77.88% change over the last ten trading days (from 7/18 - 7/29). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.03%, current ratio at 2.9, and quick ratio at 2.29. The stock is currently stuck in a downtrend, trading -5.6% below its SMA20, -9.19% below its SMA50, and -13.07% below its SMA200. The stock has performed poorly over the last month, losing 10.13%.



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


Kapitall

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