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If you tend to find yourself looking at the options market to predict movements in the spot market, then this might be an interesting starting point for you own analysis.

To compile this list we looked for stocks trading above their respective 20-, 50- and 200-day moving averages. Afterwards, we looked at the change of their Put/Call ratio over the last two weeks and focused on those that experienced a significant drop (i.e. a rising number of call options relative to put options--a bullish options trend).



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



With that said, which of these stocks are attractively priced, and which are falling knives?

1. Isoftstone Holdings Limited (NYSE:ISS):
Information Technology Services Industry. Market cap of $878.75M. This stock is trading -19.2% below its 20-day moving average, -17.2% below its 50-day moving average, and -15.87% below its 200-day moving average. The Put/Call ratio dropped by 35.42%, from 0.48 to 0.31. It's been a rough couple of days for the stock, losing 15.98% over the last week.

2. Logitech International SA (NASDAQ:LOGI):
Computer Peripherals Industry. Market cap of $2.41B. This stock is trading -4.36% below its 20-day moving average, -16.62% below its 50-day moving average, and -27.19% below its 200-day moving average. The Put/Call ratio dropped by 32.47%, from 0.77 to 0.52. The stock is a short squeeze candidate, with a short float at 15.22% (equivalent to 14.38 days of average volume). The stock has lost 13.31% over the last year.

3. Lam Research Corporation (NASDAQ:LRCX): Semiconductor Equipment & Materials Industry. Market cap of $5.87B. This stock is trading -3.12% below its 20-day moving average, -8.64% below its 50-day moving average, and -1.7% below its 200-day moving average. The Put/Call ratio dropped by 27.36%, from 1.06 to 0.77. Might be undervalued at current levels, with a PEG ratio at 0.8, and P/FCF ratio at 7.9. The stock has gained 23.48% over the last year.

4. Alaska Communications Systems Group Inc. (NASDAQ:ALSK): Telecom Service Industry. Market cap of $404.27M. This stock is trading -5.8% below its 20-day moving average, -10.62% below its 50-day moving average, and -8.9% below its 200-day moving average. The Put/Call ratio dropped by 26.03%, from 0.73 to 0.54. The stock is a short squeeze candidate, with a short float at 12.67% (equivalent to 9.37 days of average volume).

5. WebMD Health Corp. (NASDAQ:WBMD):
Internet Information Providers Industry. Market cap of $2.84B. This stock is trading -8.81% below its 20-day moving average, -8.63% below its 50-day moving average, and -6.67% below its 200-day moving average. The Put/Call ratio dropped by 24.59%, from 0.61 to 0.46. The stock is a short squeeze candidate, with a short float at 8.74% (equivalent to 6.42 days of average volume).

*Options data sourced from Schaeffer's, all other 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.

Source: Rebound Ideas: 5 Stocks on a Downtrend With Bullish Options Momentum