Nasdaq Can't Be Stopped; Dow Jones Industrial Average Heads North

Is This "Auto-Hedge" Worth the Risk?

Karee Venema

Jul 20, 2015 at 11:50 AM

It's another day, another new peak for the Nasdaq Composite (COMP), which earlier topped out at an intraday best of 5,225.30. Buoying the tech-heavy benchmark are analyst-induced pops for two notable COMP components, with both notching their highest perches to date. Elsewhere, the Dow Jones Industrial Average (DJIA) and the S&P 500 Index (SPX) have each moved off earlier lows, and are enjoying modest gains at midday. Looking ahead, this week's market drivers will be brought back home, as Greece takes a backseat to corporate earnings season and tumbling commodities.

Continue reading for more on today's market -- and don't miss:

A $2.2 billion purchase is boosting this solar stock, while negative analyst notes are sinking these two online issues.
Is it worth the risk to trade this "auto-hedge" ETF? Schaeffer's contributor Adam Warner investigates.
Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

150720mmc

Among the stocks with notable call volume is wearable camera maker GoPro Inc (NASDAQ:GPRO), with the contracts changing hands at eight times the average intraday rate -- and outpacing puts by a 2-to-1 margin. The stock is up 5.3% at $59.61, and it seems like pre-earnings option traders are buying to open the weekly 7/24 60-strike call, betting on a round-number breakout by week's end.

Vivint Solar Inc (NYSE:VSLR) is the top gainer on the Big Board -- up 44.4% at $15.73. Helping boost the shares is news of a multi-billion-dollar buyout bid from one of its sector peers. The security is now boasting a year-to-date lead of 70%.

Unlike fellow toy stock Mattel, Inc. (NASDAQ:MAT), Hasbro, Inc. (NASDAQ:HAS) is soaring after the company's quarterly earnings report. Specifically, the firm's second-quarter earnings beat estimates, sending the shares to a record high of $83.52 in early action. More recently, the stock was up 6.1% at $83.01 -- just as the options market predicted -- and on track for its first-ever close north of the round-number $80 mark. This area that has contained HAS in recent weeks.

150720has

The CBOE Volatility Index (VIX) is down 0.1 point, or 0.7%, at 11.87, and on track for its first sub-12 close since early December.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.86, with puts almost doubling calls. SPY is up 0.3 point, or 0.1%, at $212.73.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.