Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone has already bought into the stock and sideline money is virtually tapped out.

However, keep in mind that some optimism and pessimism is genuinely warranted and isn't always a contrarian indicator - like an outperforming stock with many "buy" ratings or an underperforming stock with a plethora of "sell" ratings.

In the News

According to the Zacks screener, VZ saw a significant pop in put volume on Thursday. More specifically, the equity saw roughly 12,600 puts cross the tape, more than doubling its average daily volume of about 5,800 bearishly-oriented contracts.

Sparking the preference for puts may have been a double dose of negative headlines. Ahead of the bell Thursday, TiVo Inc. (TIVO) announced that it filed a patent lawsuit against Verizon and AT&T (T) regarding their use of digital video recorders (DVRs) and "time-warping" technology.

Later, the Federal Communications Commission (FCC) launched an investigation into the "innovation" of the wireless industry". The news prompted widespread concerns regarding potential government restrictions in the future, such as capping rates that wireless companies charge one another to roam, and limiting consumers' carrier choices for smartphones like Palm Inc.'s (PALM) Pre and Apple Inc.'s (AAPL) iPhone.