Q2 STOCKS TO BUY

Blame Obama for Netflix Stock Record High

The former president and first lady are reportedly in talks to produce content for the streaming service

Mar 9, 2018 at 2:24 PM
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The U.S. stock market is in rally mode after this mornings jobs report, with the Nasdaq Composite (IXIC) barreling back into record-high territory. Among individual names making notable moves are FAANG stock Netflix, Inc. (NASDAQ:NFLX), big bank Goldman Sachs Group Inc (NYSE:GS), and Fisher-Price parent Mattel, Inc. (NASDAQ:MAT). Here's a quick look at how shares of NFLX, GS, and MAT are trading today.

Netflix Options Traders Bet on Even Bigger Gains

Like Amazon (AMZN), Netflix stock hit a record high earlier -- topping out at $329.01, before easing back to $328.70, up 3.7% on the day. Boosting the shares is a price-target hike to $360 from $319 from Piper Jaffray, and reports former President Barack Obama and First Lady Michelle Obama are in talks with the streaming giant to produce content.

NFLX stock is now boasting a 71% year-to-date advance, and it looks like some eleventh-hour traders are targeting even higher highs by tonight's close. The weekly 3/9 330-strike call is most active, and speculators may be buying to open the contracts for a volume-weighted average price (VWAP) of $0.59. If this is the case, breakeven for the options bulls is $330.59 (strike plus VWAP).

Goldman Sachs Stock Recovers From Blankfein Breather

Goldman Sachs stock briefly pared a portion of its early morning gains after The Wall Street Journal reported the financial firm's long-time CEO Lloyd Blankfein was planning to retire by the end of the year. The bank shares have since shot 1.4% higher to trade at $270.07, and are within a chip-shot of their Jan. 29 record high of $273.79.

Longer term, the shares have added almost 26% from their early September lows -- and even as bank stocks trade in a historically bullish month, GS call options are pricing in remarkably low volatility expectations relative to puts. The security's 30-day implied volatility skew of 16.9% ranks in the 96th annual percentile.

Mattel Stock Shorts Cheer Another Sharp Sell-Off

A Reuters report that Toys 'R' Us could start liquidating its U.S. operations has shares of Mattel down 7% at $14.85. This negative price action is just more of the same for MAT stock, which is down nearly 41% year-over-year. Underscoring these technical troubles are swift rejections from the equity's 200-day moving average in late-January and mid-February.

A number of short sellers are likely kicking rocks that they missed out on this next leg lower -- however, there are still plenty of bears profiting off today's slide. While short interest on MAT stock is down almost 25% from its early November peak, there are still 57.94 million Mattel shares sold short, or 16.9% of its available float.

 

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