U.S. stocks are trading higher this morning, en route to new record highsas third-quarter earnings roll in. Among the stocks making moves this morning are financial institution Bank of America Corp (NYSE:BAC), bank holding company Wells Fargo & Co (NYSE:WFC), and gene therapy concern Sparks Therapeutics Inc (NASDAQ:ONCE). Here's a closer look at what's moving shares of BAC, WFC and ONCE.
After a shaky start to the session, shares of BAC are trading slightly higher this morning following better-than-expected third-quarter earnings. BAC stock is up 1% at $25.69, hovering just below its Oct. 6 nine-year high of $26.30. Bank of America has gained roughly 60% year-over-year, and on Thursday found a foothold at its rising 20-day moving average (currently located at $25.38).
Options players favored puts ahead of BAC earnings. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.89 ranks in the 98th percentile of its annual range, as near-term options traders have rarely been more put-biased in the past 12 months. Plus, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BAC sports a 50-day put/call volume ratio of 0.37,in the 99th percentile of its annual range -- indicating puts were bought to openat a faster-than-usual clip relative to calls over this time frame.
Wells Fargo stock is taking a hit after the scandal-stricken bank reported worse-than-expected third-quarter revenue, with mortgage banking revenue tanking 37% during the period. WFC gapped lower out of the gate this morning, and at last check was trading down 3.5% at $53.30 -- tumbling back into negative year-to-date territory for the first time this month.
At the ISE, CBOE, and PHLX, Wells Fargo sports a 50-day call/put volume ratio of 1.34, which ranks in the 70th percentile of its annual range. This suggests that, despite the bank's costly scandal stemming from the creation of fake customer accounts, traders have preferred WFC call options over puts during the past 10 weeks.