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Volatility Expectations Ramp Up on Yandex Stock After Uber Deal

MNK has erased its earlier gains, which were fueled by a regulatory win for its DMD treatment

Managing Editor
Jul 13, 2017 at 10:36 AM
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U.S. stocks have turned lower, with Fed Chair Janet Yellen's second day of congressional testimony underway. Among specific names on the move are airline issue Delta Air Lines, Inc. (NYSE:DAL), tech stock Yandex NV (NASDAQ:YNDX), and healthcare firm Mallinckrodt PLC (NYSE:MNK). Here's a quick look at what's moving shares of DAL, YNDX, and MNK.

Delta Stock Retreats from Record High After Earnings

Delta Air Lines stock is down 1.4% to trade at $54.72, after the company reported adjusted earnings $1.64 per share -- short of the consensus per-share estimate of $1.66. Nevertheless, the airline giant said its quarterly passenger unit revenue rose 2.5%.

Longer term, DAL shares have been soaring since taking a sharp bounce off their 200-day moving average in mid-April -- up almost 25%, and fresh off Monday's an all-time high of $55.75 -- even amid a nearly 13% rise in short interest. This speaks volumes to the stock's underlying strength, and an unwinding of these bearish bets could help Delta stock take aim at higher highs.

Uber Agreement Sends Yandex Shares Soaring

Yandex stock has soared 14.8% to trade at $31.37 -- earlier hitting a new three-year high of $32.44 -- after the "Google of Russia" inked a deal with Uber to combine their ride-sharing businesses. The companies will join forces in Russia and five neighboring countries, with Yandex investing $100 million into the joint venture and holding a 59.3% stake in the company.

YNDX stock's surge -- which has the shares up 55.9% year-to-date -- has sparked heavy options trading, with almost 5,750 contracts traded compared to its average daily volume of 1,812. Short-term volatility expectations have ramped up, too, per the equity's 30-day at-the-money implied volatility, which was last seen up 8% at 45.2%, in the 90th annual percentile.

FDA Nod Fails to Lift MNK Stock

Mallinckrodt stock was up 2% earlier after the Food and Drug Administration (FDA) granted special "orphan status" to the healthcare stock for its Duchenne muscular dystrophy (DMD) drug. However, the stock was last seen down 0.5% at $43.89 -- bringing its year-to-date deficit to 12%. Continued struggles for MNK shares could have analysts reevaluting their ratings. Of the 14 analysts covering the stock, 13 rate it a "buy" or better, with not a single "sell" on the books.

 
 

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