The following is a list of breakout stocks, based on moving average trends. For this article, we tracked down stocks that have seen the 50-day simple moving average (SMA50) move above the 200-day moving average (SMA200)--a bullish technical signal called the "Golden Cross”.
Additionally, all of these names have a large number of open call option positions relative to put option positions, i.e. a low Put/Call ratio.
Some technical traders view the Put/Call ratio as a contrary indicator when it reaches extreme highs or lows. In other words, because the stocks mentioned below have a high number of open call option positions, contrarians would think most of the stocks mentioned below are set for a pullback. Do you agree?
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List sorted by increase in put/call ratio.
1. Scientific Games Corporation (SGMS): Multimedia & Graphics Software Industry. Market cap of $810.34M. SMA50 at $9.83 vs. SMA200 at $9.69 (price at the time of writing $8.55). Call open interest at 6,343 contracts vs. put open interest at 734 (Put/Call ratio 0.12). The stock is a short squeeze candidate, with a short float at 7.85% (equivalent to 6.51 days of average volume). The stock is currently stuck in a downtrend, trading -7.08% below its SMA20, -13.03% below its SMA50, and -11.72% below its SMA200. The stock has performed poorly over the last month, losing 10.01%.
2. Constellation Energy Group, Inc. (CEG): Electric Utilities Industry. Market cap of $6.17B. SMA50 at $8.81 vs. SMA200 at $8.7 (price at the time of writing $30.42). Call open interest at 11,812 contracts vs. put open interest at 1,859 (Put/Call ratio 0.16). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.11%, current ratio at 1.97, and quick ratio at 1.83. The stock has lost 12.39% over the last year.
3. Olin Corp. (OLN): Chemicals - Major Diversified Industry. Market cap of $1.55B. SMA50 at $8.52 vs. SMA200 at $8.44 (price at the time of writing $19.46). Call open interest at 6,285 contracts vs. put open interest at 1,347 (Put/Call ratio 0.21). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.11%, current ratio at 2.26, and quick ratio at 1.86. The stock is a short squeeze candidate, with a short float at 6.16% (equivalent to 6.76 days of average volume). The stock has gained 7.16% over the last year.
4. Knight Transportation Inc. (KNX): Trucking Industry. Market cap of $1.60B. SMA50 at $8.5 vs. SMA200 at $8.45 (price at the time of writing $19.11). Call open interest at 5,677 contracts vs. put open interest at 1,401 (Put/Call ratio 0.25). Relatively low correlation to the market (beta = 0.6), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 8.11% (equivalent to 5.79 days of average volume). The stock has lost 4.54% over the last year.
5. Sequenom Inc. (SQNM): Biotechnology Industry. Market cap of $444.24M. SMA50 at $10.17 vs. SMA200 at $9.93 (price at the time of writing $5.64). Call open interest at 25,065 contracts vs. put open interest at 6,878 (Put/Call ratio 0.27). Relatively low correlation to the market (beta = 0.3), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 16.17% (equivalent to 5.94 days of average volume). The stock is currently stuck in a downtrend, trading -6.39% below its SMA20, -15.93% below its SMA50, and -13.87% below its SMA200. The stock has performed poorly over the last month, losing 16.86%.
6. Isis Pharmaceuticals, Inc. (ISIS): Drug Manufacturers - Other Industry. Market cap of $882.28M. SMA50 at $8.82 vs. SMA200 at $8.75 (price at the time of writing $8.99). Call open interest at 4,793 contracts vs. put open interest at 1,421 (Put/Call ratio 0.3). The stock is a short squeeze candidate, with a short float at 10.43% (equivalent to 15.33 days of average volume). The stock has lost 9.59% over the last year.
7. AMR Corporation (AMR): Major Airlines Industry. Market cap of $2.17B. SMA50 at $9.65 vs. SMA200 at $9.62 (price at the time of writing $6.48). Call open interest at 250,635 contracts vs. put open interest at 83,695 (Put/Call ratio 0.33). The stock has performed poorly over the last month, losing 10.68%.
8. BioMed Realty Trust Inc. (BMR): REIT - Industrial Industry. Market cap of $2.27B. SMA50 at $8.88 vs. SMA200 at $8.74 (price at the time of writing $17.18). Call open interest at 759 contracts vs. put open interest at 273 (Put/Call ratio 0.36). The stock has gained 2.61% over the last year.
9. Millicom International Cellular SA (MICC): Telecom Services - Foreign Industry. Market cap of $9.36B. SMA50 at $9.29 vs. SMA200 at $9.23 (price at the time of writing $85.24). Call open interest at 7,220 contracts vs. put open interest at 2,622 (Put/Call ratio 0.36). The stock has lost 2.76% over the last year.
10. Ener1, Inc. (HEV): Industrial Electrical Equipment Industry. Market cap of $488.30M. SMA50 at $10.44 vs. SMA200 at $10.35 (price at the time of writing $3.03). Call open interest at 3,483 contracts vs. put open interest at 1,294 (Put/Call ratio 0.37). The stock is a short squeeze candidate, with a short float at 5.51% (equivalent to 5.02 days of average volume). The stock is currently stuck in a downtrend, trading -13.49% below its SMA20, -18.13% below its SMA50, and -17.42% below its SMA200. It's been a rough couple of days for the stock, losing 6.27% over the last week.
11. Plexus Corp. (PLXS): Printed Circuit Boards Industry. Market cap of $1.20B. SMA50 at $8.54 vs. SMA200 at $8.39 (price at the time of writing $29.57). Call open interest at 859 contracts vs. put open interest at 328 (Put/Call ratio 0.38). The stock is a short squeeze candidate, with a short float at 6.76% (equivalent to 7.23 days of average volume). The stock has lost 21.04% over the last year.
12. General Mills Inc. (GIS): Processed & Packaged Goods Industry. Market cap of $23.24B. SMA50 at $8.55 vs. SMA200 at $8.47 (price at the time of writing $36.15). Call open interest at 116,453 contracts vs. put open interest at 45,117 (Put/Call ratio 0.39). Relatively low correlation to the market (beta = 0.21), which may be appealing to risk averse investors. The stock has gained 2.81% over the last year.
13. WuXi PharmaTech (Cayman) Inc. (WX): Drug Manufacturers - Major Industry. Market cap of $1.09B. SMA50 at $9.34 vs. SMA200 at $9.17 (price at the time of writing $15.21). Call open interest at 1,042 contracts vs. put open interest at 406 (Put/Call ratio 0.39). The stock has gained 6.33% over the last year.
14. Cypress Sharpridge Investments, Inc. (CYS): REIT - Diversified Industry. Market cap of $744.50M. SMA50 at $8.66 vs. SMA200 at $8.56 (price at the time of writing $12.5). Call open interest at 6,907 contracts vs. put open interest at 2,734 (Put/Call ratio 0.4). The stock has gained 12.61% over the last year.
15. Sunstone Hotel Investors Inc. (SHO): REIT - Hotel/Motel Industry. Market cap of $1.18B. SMA50 at $9.09 vs. SMA200 at $8.89 (price at the time of writing $9.68). Call open interest at 754 contracts vs. put open interest at 306 (Put/Call ratio 0.41). This is a risky stock that is significantly more volatile than the overall market (beta = 2.81). The stock has lost 2.82% over the last year.
16. Calgon Carbon Corporation (CCC): Pollution & Treatment Controls Industry. Market cap of $840.92M. SMA50 at $8.31 vs. SMA200 at $8.22 (price at the time of writing $14.67). Call open interest at 1,283 contracts vs. put open interest at 560 (Put/Call ratio 0.44). Relatively low correlation to the market (beta = 0.77), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 6.27% (equivalent to 5.96 days of average volume). The stock has had a couple of great days, gaining 7.04% over the last week.
17. Senior Housing Properties Trust (SNH): REIT - Residential Industry. Market cap of $3.25B. SMA50 at $8.46 vs. SMA200 at $8.31 (price at the time of writing $22.7). Call open interest at 1,415 contracts vs. put open interest at 638 (Put/Call ratio 0.45). The stock has gained 10.45% over the last year.
18. Dollar Tree, Inc. (DLTR): Discount, Variety Stores Industry. Market cap of $6.69B. SMA50 at $8.26 vs. SMA200 at $8.14 (price at the time of writing $53.23). Call open interest at 15,697 contracts vs. put open interest at 7,236 (Put/Call ratio 0.46). Relatively low correlation to the market (beta = 0.43), which may be appealing to risk averse investors. The stock has lost 5.87% over the last year.
19. Enzon Pharmaceuticals Inc. (ENZN): Biotechnology Industry. Market cap of $605.87M. SMA50 at $9.42 vs. SMA200 at $9.27 (price at the time of writing $10.24). Call open interest at 7,079 contracts vs. put open interest at 3,355 (Put/Call ratio 0.47). The stock is a short squeeze candidate, with a short float at 11.34% (equivalent to 13.11 days of average volume). The stock has gained 1.2% over the last year.
20. TW Telecom Inc. (TWTC): Telecom Services - Domestic Industry. Market cap of $2.70B. SMA50 at $8.4 vs. SMA200 at $8.37 (price at the time of writing $18.13). Call open interest at 388 contracts vs. put open interest at 186 (Put/Call ratio 0.48). The stock is a short squeeze candidate, with a short float at 5.18% (equivalent to 8.29 days of average volume). The stock has lost 1.1% over the last year.
Options data sourced from Schaeffer's, short float and performance data sourced from Finviz. Data sourced on March 15th.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.