Options volume has ramped up on EXPE and TRIP today in response
The U.S. stock market is continuing its torrid pace, soaring this time thanks to optimistic trade buzz. However, three stocks stocks sitting out the surge today are travel names Expedia Group Inc (NASDAQ:EXPE) and TripAdvisor Inc (NASDAQ:TRIP), as well as biotech concern ObsEva SA (NASDAQ:OBSV). Here's a quick look at what's moving the shares of EXPE, TRIP, and OBSV.
Options Traders Flood EXPE After Earnings Whiff
Expedia stock is down 26% at $100.18 at last check, after the travel company reported third-quarter earnings and revenue that fell short of expectations amid higher marketing costs and lower bookings numbers. Analysts have absolutely gutted the stock today, with no fewer than 13 brokerages issuing price-target cuts, the lowest coming from Mizuho to $115. Piper Jaffray -- who also downgraded EXPE to "neutral," expressed concern about search engine optimization. Expedia stock earlier tagged a new annual low of $99.78, and is pacing for its worst single-session drop since July 2013.
EXPE's options pits have exploded. With just under two hours left in trading today, 79,000 options have changed hands, 23 times the average intraday amount and volume already cruising past the previous annual high of 39,232. Leading the charge are the weekly 11/8 110-strike call and weekly 11/8 100-strike put.
TRIP Falls to Two-Year Lows Amid Google Threat
Not to be outdone, TripAdvisor stock is down 20% to trade at $32.34, and earlier fell to a two-year low of $29.27. Expedia's sector peer also reported a third-quarter earnings and revenue miss, with click-based sales lower amid greater competition from Google. Only RBC has come forward with a price-target cut though, to $32 from $50. TRIP's loss is pacing to be its worst since November 2017, and brings its year-to-date deficit to 40%.
There's a similar frenzy going on among TRIP options traders. At last check, 33,000 options have been traded, 27 times the average intraday amount and volume toppling its previous annual high of 32,812 from February. The December 32.50 put is the most active, but there are also new positions being opened at the weekly 11/8 33-strike call.
ObsEva Cancels Fertility Drug, Stock Collapses
Near the bottom of the Nasdaq sits ObsEva stock, down 55.3% to trade at $3.56. The drugmaker scrapped its fertility drug nolasiban, after the oral drug failed trials. OBSV earlier traded as low as $3.34, and has now taken a 73.4% haircut in 2019. For a stock that's struggling so much, a shift in analyst sentiment could pressure it even lower. All eight of the brokerages in coverage rate OBSV a "buy" or better, and its $27 price target sits far above its June 2018 all-time high of $20.35.