Dow Jones Industrial Average Eyes Another Win; Social Media Stocks Smacked

2 Ways to Play China with Options

Jul 29, 2015 at 11:52 AM
facebook twitter linkedin

Despite uncertainty surrounding this afternoon's big Fed announcement, the Dow Jones Industrial Average (DJIA) is solidly higher -- and on track for a second straight daily win. Traders have been digesting a raft of quarterly data, especially in the social media sector -- where Twitter Inc (NYSE:TWTR) and Yelp Inc (NYSE:YELP) are both getting burned ahead of earnings from sector peers Facebook Inc (NASDAQ:FB) and LinkedIn Corp (NYSE:LNKD). Elsewhere, pending home sales fell for the first time in six months, and crude turned positive after a larger-than-expected decline in stockpiles last week.


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





Among the stocks with notable option volume is Buffalo Wild Wings (NASDAQ:WLD), as contracts are crossing at 11 times the average intraday pace in the wake of the company's latest turn in the earnings confessional. Front-month strikes are most popular, led by the August 170 and 185 puts. At last check, shares of the chicken restaurant have jumped 13.4% to $194.28 -- and are approaching their early February record high of $195.83.


One of the leading losers on the Big Board is microblogging site TWTR, which is fresh off a disappointing earnings report. As such, the shares have plummeted nearly 13% to trade at $31.83, and earlier skimmed an annual low of $31.30.


One of the notable losers on the Nasdaq is cloud concern Akamai Technologies, Inc. (NASDAQ:AKAM), down 7.3% at $68.27. Weighing on the stock are a second-quarter earnings miss and a lackluster current-quarter outlook -- not to mention, a trio of price-target cuts.




The CBOE Volatility Index (VIX) is down 0.8 point, or 5.9%, at 12.65.


Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.99, with puts roughly doubling calls. At last check, the SPY is up 1 point, or 0.5%, at $210.37.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!