Dow Jones Industrial Average Holds Gains After Trump Budget

SPY Put Options Price In Another Shocker

May 23, 2017 at 11:55 AM
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The Dow Jones Industrial Average (DJIA) has spent the first half of the trading session in positive territory, and is on track to extend its daily winning streak to four. Nevertheless, gains have been kept in check as traders consider last night's deadly terrorist attack at an Ariana Grande concert in Manchester and a mixed bag of economic data here at home, including a bigger-than-expected drop in new home sales. Traders are also mulling over President Donald Trump's fiscal 2018 budget proposal, which includes $3.6 trillion in spending cuts over the next 10 years, while looking ahead to an afternoon speech from Minneapolis Fed President Neel Kashkari.

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

  • SPY put options price in another shocker, says Bernie Schaeffer.
  • How options traders doubled their money on Alibaba stock.
  • Plus, Momo options volume explodes; AutoZone stock slumps to new low; and Seadrill's big bounce.

midday stock market stats may 23

Among the stocks with unusual options activity is Momo Inc (ADR) (NASDAQ:MOMO), with nearly 41,000 contracts traded -- representing eight times the expected intraday pace, with volume running in the 100th annual percentile. MOMO stock is trading down 2% at $41.96 post-earnings, retreating from yesterday's record high of $45.95, and most of the option activity appears to be the result of traders liquidating weekly 5/26 call positions ahead of Friday's expiration.

AutoZone, Inc. (NYSE:AZO) is one of the biggest decliners on the New York Stock Exchange (NYSE), after the auto parts retailer's disappointing earnings report was met with a downgrade at Raymond James. AZO stock is down 8.9% at $601.09 -- fresh off a two-year low of $597.45 -- and on track for its worst day in eight years.

azo stock daily price chart may 23

Rig operator Seadrill Ltd (NYSE:SDRL) is one of the leading percentage gainers on the NYSE, up 9.4% to trade at $0.57. Today's pop may be more of a dead-cat bounce for SDRL stock, though, considering it's down 83% year-to-date, and hit a record low of $0.51 yesterday. Seadrill is expected to report first-quarter earnings tomorrow.

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