Oil Leads Dow Jones Industrial Average to New High; S&P Win Streak at Risk

The Biotech Stock Getting Blown Out

Dec 12, 2016 at 11:55 AM
facebook twitter linkedin


While U.S. stocks are mixed at midday, the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) are still fresh off record highs. Specifically, the Dow is getting a big boost from oil majors -- as crude prices jump on an output agreement between members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) -- and the SPX is on track to snap its longest winning streak in two years, as expected. Drilling deeper on crude oil prices, January-dated futures were last seen up 3.5% at $53.28 per barrel, and coming off their highest level since mid-2015.

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

midday market stats dec 12

Among the stocks with unusual call volume at midday is Advanced Micro Devices, Inc. (NASDAQ:AMD), as its calls are changing hands at double the expected intraday rate -- with 50,000 contracts on the tape. The December 11 call has seen notable action, with Trade-Alert detecting buy-to-open activity. AMD is up nearly 4% at $10.74, and fresh off an analyst-induced nine-year high of $10.93.

One of the biggest losers on the Nasdaq is drugmaker Depomed Inc (NASDAQ:DEPO), down 9.7% at $18.25. Hitting the shares -- and landing them on the short-sale restricted list -- is a downgrade at Piper Jaffray

depo daily dec 12

Among the top performers on the New York Stock Exchange (NYSE) is Whiting Petroleum Corp (NYSE:WLL), thanks in part to crude oil's explosive price action. At last check, the energy stock is 2% higher at $12.38 -- though its put options are trading at triple the expected intraday rate.

The CBOE Volatility Index (VIX) is up 0.8 point, or 6.7%, at 12.54.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.31, with puts edging out calls. At last check, SPY is off 0.4 point, or 0.2%, at $226.15.

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

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners