Nine Oversold Stocks With Bullish Options Sentiment

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 |  Includes: AMAG, AZN, BKH, CKP, EJ, HR, NCI, STSA, TLCR
by: Kapitall

The following is a list of oversold stocks, as determined by the Relative Strength, or RSI(14), indicator. All of the stocks in this list have RSI(14) values below 40, which usually signal oversold conditions.

In addition, all of these stocks have a large number of open call option contracts relative to put option contracts, suggesting that options traders expect these names to rebound over coming weeks.

Is this optimism warranted? What do you think? Full details below.

Options data sourced from Schaeffer's, short float and performance data sourced from Fiviz.

Interactive Chart: Press Play to see how analyst ratings have changed for all the stocks mentioned below (based on Zacks analyst surveys)

The list has been sorted by the Put/Call ratio.

1. Talecris Biotherapeutics Holdings Corp. (NASDAQ:TLCR):
Biotechnology Industry. Market cap of $2.82B. RSI(14) at 29.79. Call open interest at 69,001 contracts vs. put open interest at 12,209 contracts (Put/Call ratio 0.18). Short float at 1.39%, which implies a short ratio of 2.03 days. The stock has gained 3.39% over the last year.

2. Checkpoint Systems Inc. (NYSE:CKP): Security & Protection Services Industry. Market cap of $691.25M. RSI(14) at 26.94. Call open interest at 616 contracts vs. put open interest at 138 contracts (Put/Call ratio 0.22). Short float at 2.33%, which implies a short ratio of 4.79 days. The stock has gained 20.36% over the last year.

3. Healthcare Realty Trust Inc. (NYSE:HR): REIT. Market cap of $1.39B. RSI(14) at 28.44. Call open interest at 755 contracts vs. put open interest at 201 contracts (Put/Call ratio 0.27). Short float at 5.41%, which implies a short ratio of 7.68 days. The stock has gained 6.7% over the last year.

4. AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG): Diagnostic Substances Industry. Market cap of $311.75M. RSI(14) at 23.77. Call open interest at 34,707 contracts vs. put open interest at 9,263 contracts (Put/Call ratio 0.27). Short float at 10.83%, which implies a short ratio of 3.81 days. The stock has lost -65.1% over the last year.

5. Black Hills Corporation (NYSE:BKH): Electric Utilities Industry. Market cap of $1.17B. RSI(14) at 29.42. Call open interest at 427 contracts vs. put open interest at 156 contracts (Put/Call ratio 0.37). Short float at 8.24%, which implies a short ratio of 9.5 days. The stock has gained 29.24% over the last year.

6. Sterling Financial Corp. (NASDAQ:STSA): Savings & Loans Industry. Market cap of $973.7M. RSI(14) at 14.31. Call open interest at 868 contracts vs. put open interest at 323 contracts (Put/Call ratio 0.37). Short float at 0.54%, which implies a short ratio of 20.11 days. The stock has lost -54.98% over the last year.

7. Navigant Consulting Inc. (NYSE:NCI): Management Services Industry. Market cap of $442.M. RSI(14) at 28.9. Call open interest at 2,508 contracts vs. put open interest at 942 contracts (Put/Call ratio 0.38). Short float at 3.2%, which implies a short ratio of 4.51 days. The stock has lost -36.27% over the last year.

8. E-House Holdings Limited (NYSE:EJ): Property Management Industry. Market cap of $1.25B. RSI(14) at 26.73. Call open interest at 7,592 contracts vs. put open interest at 2,936 contracts (Put/Call ratio 0.39). Short float at 4.74%, which implies a short ratio of 8.25 days. The stock has lost -22.08% over the last year.

9. AstraZeneca PLC (NYSE:AZN): Drug Manufacturers Industry. Market cap of $68.74B. RSI(14) at 25.57. Call open interest at 17,492 contracts vs. put open interest at 6,868 contracts (Put/Call ratio 0.39). Short float at 0.37%, which implies a short ratio of 5.33 days. The stock has gained 10.95% over the last year.

Disclosure: No positions