China, Crude Crush Dow Jones Industrial Average

Why Isn't the VIX Higher? Plus, Pharma's Big Buyout

by Alex Eppstein

Published on Jul 27, 2015 at 11:39 AM
Updated on Jun 24, 2020 at 10:16 AM

The Dow Jones Industrial Average (DJIA) is taking it on the chin, with traders wringing their hands after Chinese markets sold off sharply -- which, in turn, is weighing on these U.S.-listed stocks. Further contributing to the risk-off session are crude's ongoing woes. On the economic front, the Dallas Fed manufacturing survey missed expectations, while durable goods orders came in above estimates. Of course, the economic calendar really gets in full swing tomorrow, when the Fed is scheduled to begin its two-day policy-setting meeting.

 

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

 

  • The big M&A news shaking up the pharmaceutical industry -- and crushing this stock.
  • Schaeffer's contributor Adam Warner asks what we're all wondering: Why isn't the VIX higher?
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

 

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Among the stocks with notable call volume is Amazon.com, Inc. (NASDAQ:AMZN), with the contracts running at 1.7 times the intraday norm. The weekly 7/31 series accounts for each of the stock's four most active options, with potential buy-to-open activity at the 540- and 550-strike calls, as well as the 510-strike put. AMZN was last seen 1.8% higher at $539.11, amid a fresh round of price-target hikes and reported plans to shake up the grocery industry.

 

One of the top gainers on the Big Board is Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), following the company's $40.5 billion buyout agreement. At last check, the stock was up 12% at $69.28, and fresh off a record high of $70.09.

 

One of the biggest losers on the Nasdaq is Mylan NV (NASDAQ:MYL), which saw a takeover proposal pulled off the table, and also received a bearish brokerage note. A 12.8% loss at midday has the shares sitting at $57.50, just 2% above MYL's year-to-date breakeven mark.

 

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The CBOE Volatility Index (VIX) is up 1.9 points, or 13.6%, at 15.61.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.26, with puts more than doubling calls. At last check, the SPY was down 0.4% at $207.25.

 


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