Schaeffer's Top Stock Picks for '25

Options Traders Pile on Sinking Chinese Stock

Elsewhere, CGIX is the top Nasdaq stock today

Managing Editor
Nov 20, 2019 at 2:44 PM
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The Dow is lower today, as U.S.-China trade woes weigh on Wall Street. Among three names making notable moves today are Chinese stock Pinduoduo Inc (NASDAQ:PDD), telecommunications giant AT&T Inc. (NYSE:T), and biotech Cancer Genetics Inc (NASDAQ:CGIX). Here's a quick look at what's moving the shares of PDD, T, and CGIX.   

PDD Breaches Key Trendline After Q3 Miss

The top loser on the Nasdaq today is Pinduoduo, down 23% to trade at $31.35, after the e-commerce company reported a wider-than-anticipated third-quarter loss. PDD is cruising toward its worst single-session drop ever, despite just nabbing a record high of $42.25 as recently as Nov. 5. The shares are set to to breach their 80-day moving average for the first time since late July, and are back trading at the levels from early October.

The steep losses have PDD on the short-sale restricted (SSR) list today, so options have come into greater focus. At last check, 70,000 contracts have changed hands, triple the average intraday amount, and volume on track for the 99th annual percentile. The December 35 call is the most popular, and there are also new positions being opened at the December 30 put. 

KeyBanc Skeptical of AT&T Subscriber Potential

AT&T stock is down 4.1% to trade at $36.43, after KeyBanc predicted subscribers fell in October, and cast water on the company's HBO Max revenue potential. After nabbing a two-year high of $39.70 on Monday, T is heading toward its second straight day of sharp losses, and has now dipped below its 80-day moving average for just the second time since July. 

Options are hot today, with an emphasis on puts. At last check, 148,000 puts have changed hands, five times the average intraday amount and 3.8 times the average daily volume. The weekly 11/22 37.50-strike call is the most popular, though, with the March 33 put a close second, and new positions being opened at both.   

Strategic Review News Powering CGIX's Best Day Ever

The best stock on the Nasdaq today -- even better than Aravive (ARAV) -- is Cancer Genetics, last seen up 205.3% to trade at $6.35. This comes after the company announced it is utilizing H.C. Wainwright to explore strategic alternatives, including a potential merger or sale. In addition, the biotech said it swung to a profit in the third quarter. CGIX is cruising toward its biggest one-day gain ever, and is on track to topple its 120-day moving average on a closing basis for the first time since Oct. 17.

 
 

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