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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
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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:

 

 

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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.

 

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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.

 

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