Dow Jones Industrial Average Fights Higher; Crude Sinks

2 Sinking Biotechs -- Is One the Next Enron?

Oct 21, 2015 at 12:00 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJIA) has spent most of the day modestly higher, as traders digest the latest round of blue-chip earnings -- including better-than-expected results from Boeing Co (NYSE:BA) and mixed numbers from The Coca-Cola Co (NYSE:KO). Fellow Dow component American Express Company (NYSE:AXP) will also report this evening. Elsewhere, traders are eyeing sinking crude futures, a number of M&A headlines, and news that activist investor Carl Icahn is launching a super PAC to fight for corporate tax reform.

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

 




151021mmc




Among the stocks with notable option activity is semiconductor issue KLA-Tencor Corp (NASDAQ:KLAC), as the contracts are crossing at 18 times the intraday norm. The stock has popped 23.3% at $66.40, following a newly announced $10.6 billion buyout. KLAC's most active option by a mile is the now in-the-money November 55 call, which is seeing a mix of buy-to-open and sell-to-close activity, per the International Securities Exchange (ISE).

One of the Big Board's worst performers is virtualization specialist VMware, Inc. (NYSE:VMW), amid newly announced plans to form a new cloud business called Virtustream with parent company (and recent buyout target) EMC Corporation (NYSE:EMC), as well as an earnings beat. However, VMW also forecast weaker-than-anticipated revenue for the current quarter, resulting in bearish notes from no fewer than 18 analysts. At last check, the shares were down 17.5% at $56.70, and earlier hit a five-year low of $55.60.

151021vmw


Among the biggest advancers on the Nasdaq is Intuitive Surgical, Inc. (NASDAQ:ISRG), up 7.5% at $508.26. Lifting shares of the healthcare concern are better-than-expected quarterly results and a subsequent round of price-target hikes.

The CBOE Volatility Index (VIX) is off 0.8 point, or 5.1%, at 14.94.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.13, with puts more than doubling calls. At last check, SPY was up 0.2 point, or 0.1%, at $203.33.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners