The Chip Stock Revving Higher on Autonomous Vehicle News

By Emma Duncan / October 10, 2017 / www.schaeffersresearch.com / Article Link

The major U.S. equity benchmarks rallied to new record highs out of the gate this morning, following suit with strength in oil prices. Among the stocks making moves this morning are tech company Nvidia Corporation (NASDAQ:NVDA), biopharmaceutical concern Pfizer Inc. (NYSE:PFE), and biomaterial products developer MiMedx Group, Inc. (NASDAQ:MDXG). Here's a closer look at what's moving shares of NVDA, PFE, and MDXG.

NVDA Announces Driverless Vehicle Chips

Shares of Nvidia stock shot higher after the company unveiled chips for fully autonomous vehicles. NVDA was last seen trading up 1.9% at $188.88, after earlier setting a new record high of $192.95. The semiconductor stock has managed to gain 186% year-over-year, and sports a Schaeffer's Volatility Scorecard (SVS) rating of 97 -- suggesting NVDA has consistently exceeded the options market's volatility expectations over the past year.

Options Traders Are Call-Heavy on PFE

Despite announcing a strategic review for its consumer healthcare business, Dow stock Pfizer's shares have quickly erased early gains. The stock is fractionally lower at $36.13, after touching a new annual high of $36.51 in early trading.

Meanwhile, PFE options traders have grown increasingly bullish. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Pfizer stock sports a 10-day call/put volume ratio of 6.13, which ranks in the 97th percentile of its annual range.

MDXG Preliminary 3Q Revenue Tops Estimates

MiMedx Group announced preliminary third-quarter revenue of $84.6 million, easily topping the consensus estimate of $79.3 million. However, MDXG has erased its pre-market gains to trade down 1.3% at $11.57, backing away from resistance at its 20-day moving average. Front-month options players are pricing in relatively high volatility expectations for MDXG; the stock's Schaeffer's Volatility Index (SVI) of 113% ranks higher than 100% of other such readings from the past year.

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