Dow Jones Industrial Average Pares Gains on IMF Buzzkill

IMF Tells Greece to Kick Rocks; Plus, Should We Fear Fear?

Jun 11, 2015 at 12:05 PM
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After a banner day yesterday, the Dow Jones Industrial Average (DJIA) is back at it -- albeit more modestly. The blue-chip index is extending its journey north of 18,000, after May retail sales came in stronger than expected, marking a third straight monthly uptick. However, while the Dow was up triple digits at its session peak, it has since pared those gains after the International Monetary Fund (IMF) halted bailout talks with Greece -- pouring cold water on early hopes for a resolution on the horizon

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Among the stocks with notable option activity is virtualization concern Citrix Systems, Inc. (NASDAQ:CTXS). The shares skyrocketed after activist investor Elliott Management said the stock could be worth $90 to $100, and is seeking a meeting with the board to discuss cost-cutting efforts and share-buyback plans. Even with CTXS up 7.3% at $70.81, puts are the options of choice, with intraday volume running at 44 times the norm. Traders could be buying to open now out-of-the-money June puts to bet on a short-term pullback or to lock in portfolio gains.

One of the top gainers on the Big Board is cloud concern Box Inc (NYSE:BOX). The stock is up 6.5% at $18.94, after the firm's well-received turn in the earnings confessional. Specifically, BOX unveiled solid first-quarter figures and upped its full-year forecast -- generating upbeat analyst attention. The bull gap has the stock sitting at its highest point since April 1. 

One of the top losers on the Big Board is Transocean LTD (NYSE:RIG). The security -- along with several of its drilling peers -- is lower after Barclays launched coverage with an "underweight" rating and a $14 price target, representing a discount to RIG's current perch. At last check, the shares have surrendered 4.3% to sit at $18.26, and are in danger of ending the week south of their 10-week moving average for the first time since early April.



The CBOE Volatility Index (VIX) is down 0.3 point, or 2.5%, and is headed for its first finish south of 13 since May 22.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.5, with puts outpacing calls. At last check, SPY was up 0.5 point, or 0.3%, at $211.48.

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