Q2 STOCKS TO BUY

Options Traders Blast SDC and GOOS Stocks

Plus, tech stock Nortech Systems is set to double today

Managing Editor
Nov 13, 2019 at 2:32 PM
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Stocks are flat today, as Wall Street unpacks a congressional testimony from Fed Chair Jerome Powell, as well as public impeachment hearings against President Donald Trump. Among three stocks making notable moves today are teledentistry name SmileDirectClub Inc (NASDAQ:SDC), clothing concern Canada Goose Inc (NYSE:GOOS), and semiconductor stock Nortech Systems Inc (NASDAQ:NSYS) . Here's a quick look at what's moving the shares of SDC, GOOS, and NSYS.   

SDC Nears New Bottom After Corporate Report

SmileDirectClub stock is down 18.6% to trade at $9.02, after the company's quarterly results. Not only did it report a wider-than-expected loss, but its full-year outlook disappointed. At its session lows today of $8.75, SDC was two cents from its record low, and has now more than halved its mid-September initial public offering (IPO) price of $23. Credit Suisse has issued a price-target cut to $17 from $18, but all nine brokerages in coverage still rate SDC a "strong buy." 

Options traders have different ideas. At last check, 52,000 options have changed hands, five times the average intraday amount and volume already at a new annual high. Leading the charge is the December 7.50 put, where new positions are being opened. 

GOOS Stock Sinks After Reducing Revenue Estimates

One of the worst stocks on the New York Stock Exchange (NYSE) is Canada Goose, down 13.5% to trade at $33.76, after the coatmaker trimmed its third-quarter revenue estimates. Said CEO Dani Reiss, "We've shipped so much of our fall/winter order book earlier, which naturally means less shipments in the next quarter." GOOS is on track for its worst day since a post-earnings drop of 30.9% on May 29.  

GOOS options are all the rage today. With just under two hours left in today's trading, 41,000 options have crossed the tape, 14 times the average intraday amount and volume pacing for the 100th percentile of its annual range. There's notable activity at the weekly 11/29 35-strike put, where new positions are being opened. The November 34 put is also popular today.

Earnings Beat Powering NSYS' Best Day Ever

One of the best performing stocks on Wall Street today is Nortech Systems, up 101.2% to trade at $5.54, and earlier nabbing an annual high of $7.46. The company reported third-quarter earnings and revenue that topped analyst expectations, thanks to operational efficiencies. NSYS is eyeing its best day ever, and has blown past resistance at its 80-day moving average, a stiff ceiling since April. 

 
 

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