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Twitter Taps a New Finance Chief as Amazon Makes Prime Day History

OCUL gaps lower after FDA rejection, while Amazon announces a record-setting Prime Day

Managing Editor
Jul 12, 2017 at 10:08 AM
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U.S. stocks are higher this morning, as markets prepare for Fed Chair Janet Yellen's remarks. Among specific stocks on the move today are biotech Ocular Therapeutix Inc (NASDAQ:OCUL), social media specialist Twitter Inc (NYSE:TWTR), and FAANG member Amazon.com, Inc. (NASDAQ:AMZN). Here's a quick look at what's moving shares of OCUL, TWTR, and AMZN.

FDA Drug Rejection Hammers OCUL Stock

Ocular Therapeutix is reeling today, down 24.8% to trade at $5.72, after the Food and Drug Administration (FDA) rejected the company's eye-pain drug. The news is a blow to OCUL, which rallied yesterday amid renewed optimism over DEXTENZA. With today's early move below the $6 level, Ocular shares are now trading at new year-to-date lows. 

Options traders have been favoring OCUL puts, according to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). OCUL has a 50-day put/call volume ratio of 0.65, which ranks in the 99th percentile of its annual range. This indicates puts have been purchased at a near annual-high clip, relative to calls.

Twitter Rallies After Naming New CFO

Twitter is up 3.7% to trade at $19.33, after the social media company named Ned Segal -- formerly of Intuit and Goldman Sachs -- its new chief financial officer (CFO). Segal will take over the role in late August, and is entitled to a sign-on bonus of $300,000 in addition to his annual salary of $500,000.

TWTR is now on track for another challenge of the looming $19.50 area, which marked its 2017 high back in mid-May. Analysts are skeptical of the stock's prospects, to say the least. Of the 23 brokerages covering TWTR shares, 22 rate it a "hold" or worse.

Historic Prime Day Numbers Put Amazon Stock In Focus

Amazon stock is up 0.7% at $1,001.97, after Tuesday's Prime Day was confirmed as the biggest shopping event in the company's history -- led by sales of Amazon's own Echo Dot. It's been a year to toast for AMZN stock, which is up 33.6% year-to-date, settled above the $1,000 level on June 2, and shot to an all-time intraday high of $1,017 on June 19.

Traders looking to speculate on Amazon's next short-term move via options can do so at attractive prices right now. This is according to AMZN's Schaeffer's Volatility Index (SVI) of 20%, which stands higher than just 24% of all other readings from the past year. This indicates the stock's near-term options are pricing in relatively low volatility expectations.

 

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