Oil Rally Lifts Dow Jones Industrial Average; Nasdaq Flops

Is It Time to Buy Blue-Chip Options?

Apr 8, 2016 at 12:13 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJIA) has lost some steam since its intraday peak, but remains comfortably higher at midday, as U.S. stocks respond to a rally in oil prices. May-dated crude futures are up 6.7% at $39.75 per barrel -- on pace for their best finish since March 23 -- as investors hold out hope for a production freeze. In addition, last night's comments from Fed Chair Janet Yellen lifted sentiment across Wall Street, along with dovish remarks from New York Fed President William Dudley. Meanwhile, the S&P 500 Index (SPX) has moved back into the black for the year, though the tech-rich Nasdaq Composite (COMP) has given up an early lead. 

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



Among the names with unusual option volume LinkedIn Corp (NYSE:LNKD), as the stock continues to fall after another bearish note from Wall Street. With LNKD down 2.3% at $109.83, put options are crossing at twice the average intraday pace. The most popular strike is the weekly 4/8 110-strike put, and it looks like this option has attracted both eleventh-hour buyers and sellers. For those initiating long positions, they're hoping for LNKD to keep falling below $110 before today's close. 

One of the top performers on the New York Stock Exchange is mining stock Freeport-McMoRan Inc (NYSE:FCX). A pair of bullish analyst notes have the shares 6.7% higher at $9.44. However, FCX's 200-day moving average has come into play during recent weeks, and may be acting as resistance. 


Gap Inc (NYSE:GPS) is leading the losers on the Big Board, after the retail stock announced disappointing same-store sales for March. The shares have fallen 12.6% at $24.18, on pace for their lowest close since Feb. 12. 

CBOE Volatility Index (VIX) is down 0.8 point, or 5.1%. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.30, with puts outnumbering calls. The SPY is 1.2 points, or 0.6%, higher at $205.13. 

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

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! 


300x250 - Banner 3 - v1