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The following is a list of overbought stocks, as defined by the Relative Strength, or RSI(14), indicator. To control for quality, we only focus on stocks with market caps north of $300M.

All of these stocks have very high Put/Call ratios, meaning that put option open interest is much larger than call option open interest. In other words, options traders expect these stocks to reverse over the next few weeks.

Judging by historical performance, it looks like this screen tends to produce good short candidates. We last wrote about this screen on September 16, 2010. On that day, the screen produced 14 companies. Since then, 4 out of 14 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 28.57%). The screen averaged a return of 7.78% vs. an index return of 10.29%. Click here to access a full breakdown of the screen's past performance.

RSI(14) values sourced from Finviz, options data sourced from Schaeffer's. Full analysis below.

Interactive Chart: Press Play to compare analyst ratings for the top 6 stocks mentioned below.

1. International Flavors & Fragrances Inc. (NYSE:IFF): Specialty Chemicals Industry. Market cap of $4.46B. RSI(14) at 71.17. Call open interest at 1,439 contracts vs. put open interest at 19,312 contracts (Put/Call ratio at 13.42). Short float at 0.79%, which implies a short ratio of 1.36. The stock has gained 37.16% over the last year.

2. iShares Russell 2000 Index (NYSEARCA:IWM): ETF. Market cap of $15.45B. RSI(14) at 73.46. Call open interest at 742,101 contracts vs. put open interest at 2,527,292 contracts (Put/Call ratio at 3.41). Short float at 94.99%, which implies a short ratio of 3.61. The stock has gained 32.04% over the last year.

3. Atlantic Power Corporation (NYSE:AT): Electric Utilities Industry. Market cap of $4.96B. RSI(14) at 73.82. Call open interest at 48 contracts vs. put open interest at 157 contracts (Put/Call ratio at 3.27). Short float at 0.03%, which implies a short ratio of 0.4. The stock has gained 50.68% over the last year.

4. Wimm-Bill-Dann Foods OJSC (NYSE:WBD): Dairy Products Industry. Market cap of $5.29B. RSI(14) at 74.93. Call open interest at 667 contracts vs. put open interest at 2,065 contracts (Put/Call ratio at 3.1). Short float at 1.32%, which implies a short ratio of 1.85. The stock has gained 61.82% over the last year.

5. Manpower Inc. (NYSE:MAN): Staffing & Outsourcing Services Industry. Market cap of $5.16B. RSI(14) at 74.13. Call open interest at 3,367 contracts vs. put open interest at 10,404 contracts (Put/Call ratio at 3.09). Short float at 3.15%, which implies a short ratio of 3.56. The stock has gained 14.06% over the last year.

6. Illumina Inc. (NASDAQ:ILMN): Biotechnology Industry. Market cap of $7.89B. RSI(14) at 74.09. Call open interest at 7,542 contracts vs. put open interest at 20,195 contracts (Put/Call ratio at 2.68). Short float at 7.97%, which implies a short ratio of 7.71. The stock has gained 131.84% over the last year.

7. Expeditors International of Washington Inc. (NASDAQ:EXPD): Air Delivery & Freight Services Industry. Market cap of $11.92B. RSI(14) at 70.65. Call open interest at 5,944 contracts vs. put open interest at 14,439 contracts (Put/Call ratio at 2.43). Short float at 2.87%, which implies a short ratio of 4.37. The stock has gained 75.1% over the last year.

8. SPDR S&P MidCap 400 (NYSEARCA:MDY): ETF. Market cap of $10.35B. RSI(14) at 72.77. Call open interest at 26,590 contracts vs. put open interest at 63,471 contracts (Put/Call ratio at 2.39). Short float at 17.22%, which implies a short ratio of 3.15. The stock has gained 30.2% over the last year.

9. Stericycle, Inc. (NASDAQ:SRCL): Waste Management Industry. Market cap of $6.72B. RSI(14) at 74.21. Call open interest at 2,434 contracts vs. put open interest at 5,077 contracts (Put/Call ratio at 2.09). Short float at 7.73%, which implies a short ratio of 13.33. The stock has gained 35.85% over the last year.

10. Becton, Dickinson and Company (NYSE:BDX): Medical Instruments & Supplies Industry. Market cap of $18.86B. RSI(14) at 73.16. Call open interest at 6,768 contracts vs. put open interest at 11,455 contracts (Put/Call ratio at 1.69). Short float at 2.44%, which implies a short ratio of 4.68. The stock has gained 7.79% over the last year.

11. T. Rowe Price Group, Inc. (NASDAQ:TROW): Asset Management Industry. Market cap of $16.16B. RSI(14) at 70.74. Call open interest at 6,681 contracts vs. put open interest at 11,248 contracts (Put/Call ratio at 1.68). Short float at 4.16%, which implies a short ratio of 5.3. The stock has gained 32.84% over the last year.

12. Cablevision Systems Corporation (NYSE:CVC): CATV Systems Industry. Market cap of $10.42B. RSI(14) at 84.73. Call open interest at 10,687 contracts vs. put open interest at 17,369 contracts (Put/Call ratio at 1.63). Short float at 2.43%, which implies a short ratio of 3.08. The stock has gained 35.15% over the last year.

13. Robert Half International Inc. (NYSE:RHI): Staffing & Outsourcing Services Industry. Market cap of $4.44B. RSI(14) at 71.22. Call open interest at 696 contracts vs. put open interest at 1,112 contracts (Put/Call ratio at 1.6). Short float at 10.55%, which implies a short ratio of 12.79. The stock has gained 20.13% over the last year.

14. Fastenal Co. (NASDAQ:FAST): General Building Materials Industry. Market cap of $8.72B. RSI(14) at 77.13. Call open interest at 13,865 contracts vs. put open interest at 22,104 contracts (Put/Call ratio at 1.59). Short float at 12.3%, which implies a short ratio of 16.39. The stock has gained 55.18% over the last year.

15. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Semiconductor Industry. Market cap of $62.59B. RSI(14) at 70.83. Call open interest at 7,050 contracts vs. put open interest at 10,519 contracts (Put/Call ratio at 1.49). Short float at 0.39%, which implies a short ratio of 1.59. The stock has gained 16.38% over the last year.

16. Fortune Brands Inc. (FO): Home Furnishings & Fixtures Industry. Market cap of $9.61B. RSI(14) at 75.69. Call open interest at 19,894 contracts vs. put open interest at 29,276 contracts (Put/Call ratio at 1.47). Short float at 4.64%, which implies a short ratio of 4.59. The stock has gained 62.4% over the last year.

17. Riverbed Technology, Inc. (NASDAQ:RVBD): Networking & Communication Devices Industry. Market cap of $5.48B. RSI(14) at 78.93. Call open interest at 91,547 contracts vs. put open interest at 132,278 contracts (Put/Call ratio at 1.44). Short float at 8.68%, which implies a short ratio of 2.28. The stock has gained 268.58% over the last year.

18. Informatica Corporation (NASDAQ:INFA): Business Software & Services Industry. Market cap of $4.16B. RSI(14) at 70.06. Call open interest at 8,704 contracts vs. put open interest at 12,176 contracts (Put/Call ratio at 1.4). Short float at 6.8%, which implies a short ratio of 6.34. The stock has gained 87.41% over the last year.

19. The Home Depot, Inc. (NYSE:HD): Home Improvement Stores Industry. Market cap of $56.38B. RSI(14) at 74.36. Call open interest at 183,826 contracts vs. put open interest at 255,960 contracts (Put/Call ratio at 1.39). Short float at 1.54%, which implies a short ratio of 1.99. The stock has gained 26.7% over the last year.

20. Salesforce.com (NYSE:CRM): Application Software Industry. Market cap of $19.53B. RSI(14) at 72.1. Call open interest at 76,407 contracts vs. put open interest at 104,274 contracts (Put/Call ratio at 1.36). Short float at 9.75%, which implies a short ratio of 3.34. The stock has gained 129.73% over the last year.

Source: Short Ideas: 20 Overbought Stocks With Bearish Options Sentiment