Street Chatter: Stocks in Focus

Strategic Insights -

Schaeffer's Investment Research has identified Exxon Mobil (NYSE:XOM), Intel (NASDAQ:INTC), GlaxoSmithKline (NYSE:GSK), and XM Satellite Radio (NASDAQ:XMSR) as key stocks generating significant chatter on Internet message boards. This "Street Chatter" report highlights the trading activity and potential pitfalls for each stock, including technical and fundamental analysis.

Key Takeaways:

  • Exxon Mobil missed analysts' expectations by a dime per share in its first-quarter earnings release, despite lower chemical margins offsetting rising crude-oil and natural-gas costs. The stock has rebounded to its breakeven mark, thanks to a successful test of support at its 80-day moving average.
  • Over 5,000 calls were added at the out-of-the-money May 65 strike, bringing total open interest to nearly 30,000 contracts. The July 65 call strike has an even greater presence, with over 42,000 positions.
  • Intel's shares have overcome their 10-week moving average after its CEO revealed a restructuring and reorganization plan, causing a 2% increase in share price.
  • The stock's out-of-the-money May 20 call saw the addition of roughly 30,000 contracts, bringing total open interest to just under 230,000 contracts.
  • The May 20 strike is a significant hurdle to surmount, with the June 20 and July 22.5 call strikes also attracting heavy open interest.
  • GlaxoSmithKline shares have rallied nearly 5% on strong first-quarter earnings results, reaching a new annual high. The stock is now above the 55 mark, a critical level from an options trading perspective.
  • The May 55 put is home to over 5,000 contracts and may function as structural resistance until May expiration.
  • XM Satellite Radio shares have pulled lower after a wider-than-expected quarterly loss, forcing its 10-day and 20-day moving averages into a bearish crossover.
  • The stock is sandwiched between potential support in the form of heavy put open interest at the May 20 strike and overhead resistance at the May 22.5 call.

Statistics:

  • Exxon Mobil's first-quarter earnings missed analysts' expectations by $0.10 per share.
  • Over 5,000 calls were added at the May 65 strike, representing nearly 30,000 contracts.
  • Intel's shares increased 2% after its CEO revealed a restructuring plan.
  • The May 20 call strike has an open interest of just under 230,000 contracts.
  • GlaxoSmithKline shares have rallied nearly 5% to a new annual high.
  • XM Satellite Radio's shares have pulled lower after a wider-than-expected quarterly loss.
  • The May 20 strike has an open interest of almost 7,000 out-of-the-money puts.

Sources:

  • Schaeffer's Investment Research (www.SchaeffersResearch.com)
  • Exxon Mobil (NYSE:XOM) earnings release
  • Intel (NASDAQ:INTC) press release
  • GlaxoSmithKline (NYSE:GSK) earnings release
  • XM Satellite Radio (NASDAQ:XMSR) earnings release
  • http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSC12M&PAGE=1
  • http://www.schaeffersresearch.com/wire?ID=15885