Trump Woes Level Dow Jones Industrial Average; VIX Spikes

Dow Dives, VIX Soars; 'Buy the Dips' on This Stock

May 17, 2017 at 12:00 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJIA) is spiraling, as reports that President Donald Trump may have obstructed justice -- based on leaked memos from former FBI Director James Comey -- rattle the stock market. Specifically, stocks are reacting to concerns that Trump's legislative agenda will possibly take a back seat to the political drama in D.C. -- which some speculate could lead to impeachment -- with the Dow down more than 200 points, and the S&P 500 Index (SPX) and Nasdaq Composite (COMP) retreating from record highs. This risk-off backdrop has traders rushing toward safe-haven assets, with June-dated gold futures up 1.9% at $1,259.90 an ounce. Elsewhere, the CBOE Volatility Index (VIX) has surged almost 23% to trade near levels not seen since before the French election relief rally in late April.

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

  • Analyst: "Buy the dips" on this Dow stock.
  • While Target shares are hot post-earnings, this fellow retail stock is fresh off a new low.
  • Plus, EXPR options traders brace for a volatility crush; AMD stock sells off; and the stock popping on sale news.

midday market stats may 17

Among the names with unusual options activity is retailer Express, Inc. (NYSE:EXPR). More than 35,000 puts have traded -- 35 times the expected intraday rate, and a new annual high -- compared to zero calls. Almost all of the action has centered at the June 7 put, and if it's similar to Tuesday's activity, new positions are being sold to open. With Express earnings due the morning of June 1 and EXPR stock's 30-day at-the-money implied volatility in the 98th annual percentile, it's likely put sellers are hoping for a post-earnings volatility crush. EXPR stock was last seen trading down 1.9% at $7.79, fresh off a record low of $7.76.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is the biggest decliner on the S&P, after the chipmaker failed to comment on an expected licensing deal with Intel. Pouring salt on the wound is a downgrade to "hold" from "buy" at Loop Capital. After AMD stock rallied ahead of its analyst day yesterday, it was last seen down 8.3% at $11.69 and back below its 120-day moving average.

amd stock price chart may 17

Colgate-Palmolive Company (NYSE:CL) is one of the leading advancers on the SPX, after CEO Ian Cook said he'd be open to selling the consumer products giant for $100 a share. CL stock is trading up 2.8% at $73.63, at last check.

 

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! 

 


 


 
Special Offers from Schaeffer's Trading Partners