Contrarian Ideas: 4 Highly Shorted Stocks With Bearish Options Sentiment

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Includes: DDD, ESI, NOG, SODA
by: Kapitall

Here we present four companies that have more than a fifth of their floating shares being shorted. Additionally, all these names have seen their Put/Call ratio significantly increase over the last two weeks (i.e. rising put options relative to call options, indicating bearish options sentiment.)



We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 (NYSEARCA:SPY) index over the last month. To access a complete analysis of this list's recent performance, click here.

(Click chart to enlarge)


Given the excessive pessimism, which of these stocks do you find most attractively priced?

Northern Oil and Gas, Inc. (NYSEMKT:NOG): Oil & Gas Drilling & Exploration Industry. Market cap of $1.35B. Float short at 26.86%. The Put/Call ratio increased by 79.01%, from 0.81 to 1.45. The stock is currently stuck in a downtrend, trading -8.2% below its SMA20, -19.39% below its SMA50, and -5.19% below its SMA200. It's been a rough couple of days for the stock, losing 9.28% over the last week.

SodaStream International Ltd. (NASDAQ:SODA): Packaging & Containers Industry. Market cap of $855.90M. Float short at 20.35%. The Put/Call ratio increased by 58.97%, from 0.78 to 1.24.

ITT Educational Services Inc. (NYSE:ESI): Education & Training Services Industry. Market cap of $1.97B. Float short at 23.03%. The Put/Call ratio increased by 28.0%, from 1.5 to 1.92. The stock has performed poorly over the last month, losing 10.63%.

3D Systems Corp. (TDSC): Multimedia & Graphics Software Industry. Market cap of $999.29M. Float short at 63.85%. The Put/Call ratio increased by 25.0%, from 0.84 to 1.05. After a solid performance over the last year, TDSC has pulled back during recent sessions. The stock is -13.39% below its SMA20 and -15.76% below its SMA50, but remains 33.68% above its SMA200. The stock has performed poorly over the last month, losing 30.99%.

*Options data sourced from Schaeffer’s, other relevant data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.