Skepticism Builds on Research in Motion (RIMM), QUALCOMM Incorporated (QCOM), and Dendreon (DNDN)

Tags: RIMM
11 Jul 11:46pm
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The tables below show the stocks have seen the largest net call and put accumulations over the last 5 days, based on the International Securities Exchange (ISE) buy-to-open data. The stocks that immediately caught my eye are Research in Motion (RIMM), QUALCOMM Incorporated (QCOM), and Dendreon (DNDN).

Methodology - I looked at the call and put accumulations over the last 5 days based on the International Securities Exchange (ISE) buy-to-open data. I then netted the calls and puts together to find imbalances and sorted the list based on that. The tables show the stocks with the heaviest call and put accumulations, along with the stock's recent performance.

What drew my attention to both RIMM and QCOM are the weekly charts below that show intermediate-term uptrends. RIMM is pulling back after hitting a new high and I would take this skepticism from option traders as an encouraging sign that the recent drop is just a pullback amid the uptrend. Earlier this year I expressed some concerns about QCOM but it would seem those were unfounded as the stock has steadily outpaced the Nasdaq Composite (COMP) this year. Both RIMM and QCOM are heavily favored by the Street so that is something to note but I wouldn't view that as a major concern unless the stocks break the intermediate-term uptrends.


Chart Courtesy of Thomson Financial


Chart Courtesy of Thomson Financial

Meanwhile, the reason that Dendreon caught my eye is for a relative lack of movement. As the daily chart below shows, the shares have been bouncing along their recent lows. The uptick in skepticism suggests that some are looking for those lows to break.


Chart Courtesy of Thomson Financial


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Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.