Volatile Session for Stocks Has VIX Spiking

All three benchmarks are headed toward their third straight loss

Managing Editor
Oct 8, 2018 at 12:08 PM
facebook twitter linkedin

It's been a roller-coaster ride on Wall Street today, with the Dow Jones Industrial Average (DJI) erasing steep early morning losses to briefly trade in positive territory. The blue-chip index was down more than 200 points at last check, though, and appears headed toward a third straight loss alongside the S&P 500 Index (SPX) and Nasdaq Composite (IXIC).

Traders appear to be reacting to growing U.S.-China tensions, with the People's Bank of China (PBOC) slashing its reserve requirement ratio over the weekend, and Secretary of State Mike Pompeo saying the U.S. has "grave concerns about the actions China has taken," ahead of a meeting between the two nations today. Against this backdrop, the Cboe Volatility Index (VIX) is trading at its highest levels since June.

Continue reading for more on today's market, including:

  • Morgan Stanley named its favorite cybersecurity stock.
  • Analyst targets 400% upside for this penny stock
  • Plus, options bulls cash out as Campbell's stock pops; Morgan Stanley slashes WYNN's price target; and Workday stock extends pullback.

Midday Market Stats Oct 8

Campbell Soup Company (NYSE:CPB) is sporting unusual options volume for the second day in a row, with nearly 6,400 calls on the tape, four times the average intraday pace. Most active is the February 2019 40 call, where it looks like speculators are liquidating long positions that may have been initiated back on Sept. 28. CPB is up 2.8% at $38.27, but is still staring at a 21% deficit for 2018, and recently flashed a bearish signal.
Wynn Resorts Ltd. (NASDAQ:WYNN) is one of the worst stocks on the S&P 500 today, down 3.1% to trade at $116.95 -- fresh off an annual low of $116.39 -- after Morgan Stanley sliced its price target to $139 from $187. The analyst in coverage also downwardly revised their Macau gross gaming revenue estimates for 2018. Wynn stock has now shed nearly 31% in 2018, pressured lower by its declining 30-day moving average since May.

Workday Inc (NASDAQ:WDAY) is seeing notable losses today, down 3.8% to trade at $135.49. Workday stock raced to a record high of $157.12 back on Sept. 4, but pulled back sharply following the software company's disappointing margin forecast. Today's drop has WDAY shares on track to close below their 80-day moving average for the first time since Aug. 1.

MMC Daily Chart WDAY


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