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Dow Jones Industrial Average Surges 220 on McD's, Draghi, and Data

The Volatility Traders With Buyer's Remorse

Oct 22, 2015 at 11:54 AM
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The Dow Jones Industrial Average (DJIA) is firing on all cylinders, up triple digits on the European Central Bank's (ECB) rate decision and President Mario Draghi's subsequent comments -- which communicated the ECB's openness to further stimulus measures. Meanwhile, blue chip McDonald's Corporation (NYSE:MCD) is providing a huge upside catalyst, surging 7% -- and to record highs -- on an earnings beat, with several mega-caps set to report tonight. Traders are also digesting an upbeat round of data, with existing home sales rising more than expected and weekly jobless claims edging higher -- but registering below the consensus estimate.

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

 

  • Schaeffer's contributor Adam Warner looks at one group of traders likely experiencing buyer's remorse.
  • Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is continuing to collapse, but losses at this sector peer are just as bad.
  • 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 activity is Lululemon Athletica inc. (NASDAQ:LULU), with the contracts crossing at five times the expected intraday rate. Shares of the yoga apparel peddler are down 2.7% at $50.60, following a bearish note at UBS and a major organizational shuffle. Diving deeper, it looks like LULU's out-of-the-money December 52.50 call is seeing buy-to-open activity.

One of the Nasdaq's top performers is Internet marketplace eBay Inc (NASDAQ:EBAY), fresh off an earnings beat and a round of bullish brokerage notes. At last check, the stock is 11.3% higher at $26.94.

151022ebay

Among the worst-performing stocks on the Nasdaq is Endo International plc (NASDAQ:ENDP), with shares of the drugmaker down 9.1% at $49.53 -- following the lead of VRX. Also, ENDP earlier panned a nearly two-year low of $48.90.

The CBOE Volatility Index (VIX) is down 1.4 points, or 8.6%, at 15.27.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.96, with puts nearly doubling calls. SPY was last seen 2.9 points, or 1.4%, higher, at $204.76.

 

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