Apple Drags On Dow Jones Industrial Average

Does This Popular Strategy Live Up to the Hype?

Oct 26, 2015 at 11:51 AM
facebook twitter linkedin


The Dow Jones Industrial Average (DJIA) has spent the first half of the session modestly lower, as traders exercise caution ahead of the Federal Open Market Committee's (FOMC) two-day policy meeting later this week. In addition, Apple Inc. (NASDAQ:AAPL) shareholders are hitting the bricks ahead of earnings tomorrow night, with the iPhone maker the biggest blue-chip decliner. Outside of earnings, Wall Street is digesting a slew of M&A activity, on top of sinking oil prices and a 10-month low in new home sales.

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

 


151026MMC



Among the stocks with notable option activity is Apple supplier -- and historic fourth-quarter laggard -- Cirrus Logic, Inc. (NASDAQ:CRUS), which is slated to report earnings after the close on Wednesday. At last check, CRUS has surrendered 10.5% to sit at $30.19, after fellow AAPL supplier Dialog Semiconductor plummeted on ominous earnings. The equity now sits on the short-sale restricted list, and puts are trading at seven times the average intraday pace, with potential buy-to-open action spotted at the November 34 strike.

One of the Nasdaq's top performers is TASER International, Inc. (NASDAQ:TASR), which is up 6.3% at $23.76, after the company announced a partnership with Microsoft Corporation (NASDAQ:MSFT). However, the stock remains more than 10% lower year-to-date.

Among the leading losers on the Big Board is oil-and-gas concern Chesapeake Energy Corporation (NYSE:CHK), which is slumping in step with crude. The shares were last seen 7% lower at $7.28, bringing their 2015 loss to 62.8%. Prior to today, CHK was in the black on a month-to-date basis, but is now sitting back below its 10-week moving average, which -- along with its 20-week cohort -- has stifled rebound attempts for the past year. 

151026MMC_CHK


The CBOE Volatility Index (VIX) is up 0.6 point, or 4.4%, at 15.09.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.67, with puts outstripping calls. At last check, SPY was 0.6 point, or 0.3%, lower at $206.92.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners