Dear Trader,
Charles here.
Every trader has the same problem: you can't always tell whether a stock sitting at a 52-week low is a setup or a graveyard.
Andrew’s Sibyl Scanner does that work for him, and this week it flagged two names sitting in completely different chapters of the same story.
One is a content giant the market wrote off, where the option accumulation says somebody big didn't get the memo.
The other is a name you've probably ordered from lately, and the chart says nobody else is.
Here's Andrew with one to buy and one to dodge.
Sometimes the market takes a while to warm back up to something, and right now that something is Netflix Inc. (NFLX). The stock is just stuck below $100 and not really making much headway.
There's very big option accumulation going on, though, and my Sibyl Scanner is picking it up.
NFLX is still the content king. They're the winner in the Warner Bros. Discovery (WBD) lotto by not having to spend $100 billion on it. Traders are piling into long-dated options here.
NFLX 1-Year Chart
NFLX should see a pickup in revenue. As oil prices stay higher, folks stay home and watch what they already have. The option accumulation will rule, and NFLX should be over $100 by the beginning of summer.
I don’t want a slice of this
Plenty of stocks are hitting 52-week lows, or close to it. Two categories hurting from the first quarter into the second quarter of 2026 are healthcare and food service. I'm aiming for food service this week.
Papa John’s Int (PZZA) makes a good pizza. Portillo’s (PTLO) makes a crazy Italian Beef Sandwich. makes a crazy Italian beef sandwich. Both stocks are trash. I will not buy any more PTLO until it's over $8.
The reason is simple: food and labor costs. Some states are raising minimum wages to $20 an hour plus. Chain restaurants are getting squeezed by a variety of factors, and I don't see that slowing down yet.
It still amazes me that people pay to DoorDash McDonald's Corp. (MCD), but those SNAP benefits are coming to an end. The rise of Ozempic might have something to do with that too. Either way, PZZA is floundering on every metric and close to 52-week lows.
PZZA 1-Year Chart
I wrongly thought there was a bottom to PTLO and took some stock at $5.50 that I'm wearing. With PZZA, I will not make that same mistake.
The company probably sees $30, but most food service businesses will struggle in the short term. There was a time when the restaurant biz was all growth. That's not the case anymore. PZZA gets a pass.
All right, everybody have a good day.
AG
So that's one streaming name AG thinks the market is sleeping on, and one pizza name he says is heading the wrong direction at the wrong time.
Two charts, two opposite signals, one read on the consumer.
Cable is dying, kitchens are quiet, and the option desk is busy.
The real question: what will the team pick on Monday?
Join the Ticker Highlight Show Premium before Monday at 10:30 AM ET to find out.
See you there,
Charles Delvalle
Managing Editor, Option Pit