Dow Jones Industrial Average Tanks as Bank Stocks Sell Off

The VIX Signal Flashing for the First Time In 10 Years

Mar 21, 2017 at 12:01 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJIA) is in free-fall at midday, amid a broad sell-off in the financial sector. Bank stocks across the board are getting hammered, with JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) among the biggest Dow laggards today. The risk-off approach comes despite a fresh record high from Apple Inc. (NASDAQ:AAPL), after the company released a new iPhone 7 and a new iPad this morning. As it stands now, the Dow and S&P 500 Index (SPX) are on pace for a fourth straight loss, while the CBOE Volatility Index (VIX) is eyeing its highest close in roughly three weeks. 

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

  • The big upgrade that has Facebook stock at record highs. 
  • The VIX signal flashing for the first time in 10 years. 
  • Plus, Netflix options traders eye higher highs; Oclaro gains yet again; and a red-hot Japan-based tech issue. 

stock market news today

Among the names seeing accelerated options trading today is Netflix, Inc. (NASDAQ:NFLX), with the streaming stock earlier hitting a fresh record peak of $147.70 before dropping 1.3% to trade at $143.97. While NFLX puts have been popular in recent weeks, calls are leading the way today, thanks to heavy interest in the weekly 3/24 series. It looks like the 146-, 147-, and 148-strike calls could all be seeing buy-to-open activity, meaning speculators are betting on extended upside for Netflix stock through week's end, when the contracts expire. 

Optical solutions specialist Oclaro, Inc. (NASDAQ:OCLR) is gaining on the Nasdaq once again, putting the stock on pace for a fifth straight win. At last check, OCLR stock was up 2.1% to trade at $9.79, on pace for its best close in nearly a month. It'll be interesting to see if this win streak deters short sellers, since short interest exploded by nearly 20% in the past two reporting periods. 

Over on the Big Board, another stock that's been hot is Japan-based tech firm Line Corp (ADR) (NYSE:LN), with the shares adding 3.2% to trade at $37.98. LN stock is now up 22% since its Feb. 22 low of $30.90. Still, the shares -- which began trading publicly back in July -- remain well below their record peak of $51.48 from September.

line stock news

Don't miss the stock market's big finish. Sign up now for Schaeffer's Market Recap.


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 Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners