Tuesday’s Vital Data: Ford Motor Company (F), Pfizer Inc. (PFE) and Herbalife Ltd. (HLF)

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The major market indices took a breather on Monday, as stocks looked to solidify last week’s gains ahead of economic data out of the eurozone and China. Activity in the options pits remained optimistic despite the pause, as the CBOE put/call volume ratio dipped again, arriving at 0.56. The 10-day moving average, meanwhile, hit a one-week low of 0.66.

Today, we’ll take a look at Ford Motor Company (NYSE:F), Pfizer Inc. (NYSE:PFE) and Herbalife Ltd. (NYSE:HLF), which are the most interesting stocks registering top-10 options data.

Tuesday’s Vital Data: Ford Motor Company (F), Pfizer Inc. (PFE) and Herbalife Ltd. (HLF)

Ford Motor Company (F)

Shares of Ford stock extended their recent breakout above support/resistance at $16 on Monday, with several small reports providing fuel for the day. Specifically, news hit that General Motors Company (NYSE:GM) was ending its operations in Russia amid auto-industry troubles in the country, while Ford has decided to continue to carry out its business plan in the area.

Furthermore, Ford’s Mustang is set to outsell GM’s Camaro this year, and the company is also poised to eclipse Hyundai Motor Co. in terms of sales in China — the largest auto market in the world.

The smorgasbord of reports may have only elicited a gain of 0.5% for F stock on Monday, but options activity swelled to a short-term peak with more than 200,000 contracts changing hands on the issue. What’s more, some 51% of this volume traded on the call side, hinting at bullish intentions from option traders.

Currently, the out-of-the-money April $17 call strike is home to peak open interest of 28,629 contracts, but puts still have the upper hand in the series, with 20,000-plus contracts at the April 16,15, and 14 strikes.

Pfizer Inc. (PFE)

Shares of blue-chip pharmaceutical firm Pfizer jumped more than 2% on Monday, after the company announced that it was resuming late-stage trials its chronic pain drug tanezumab, which is being co-developed with Eli Lilly and Co. (NYSE:LLY), after the FDA said it was lifting a partial hold on trials for the medication.  The FDA put the drug was on hold in 2012 due to nervous-system side effects seen in animal studies.

Options activity for PFE stock was brisk following the news, with 194,374 contracts changing hands – a near-term peak for PFE options activity. The vibe was generally positive as well, with 75% of Monday’s volume trading on the call side.

Yesterday’s activity looks to resume a bullish trend for PFE options activity. The stock’s put/call open interest ratio for the front two-months jumped from a near-term low following March options expiration, this ratio appears to be headed lower once again. Particular attention is being paid to the weekly March 27 series $35.50 and $34.50 strikes, where 14,787 contracts and 11,438 contracts, respectively, are currently open.

Herbalife Ltd. (HLF)

Shares of global nutrition firm Herbalife continued to surge a couple days after a court dismissed a lawsuit filed by activist investor Bill Ackman. According to the judge, there was insufficient evidence to show fraudulent activities on behalf of Herbalife. After the ruling, Ackman noted that the ruling did not “exonerate or bless Herbalife’s business practices.”

Jumping on the bullish bandwagon, HLF stock options traders sent more than 82,900 contracts across the tape Monday, with 55% of those changing hands on the call side. As a result, HLF’s put/call open interest ratio for the front-two months plunged to an annual low — in other words, calls have not been more popular than puts at any point during the past year for short-term options.

HLF stock could be in for additional gains today, with the shares up roughly 1% in premarket trading. Look for follow-through and technical buying today if the stock eclipses its 200-day moving average at $45.40.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/03/tuesdays-vital-data-ford-motor-company-f-pfizer-inc-pfe-herbalife-lts-hlf-options/.

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