Dow Holds Gains Despite Durable Goods Disappointment

There's unusual options trading on Chinese auto stock Nio

May 24, 2019 at 12:10 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJI) is off its early highs, sporting a modest lead at midday. Traders are staying focused on President Donald Trump's China comments from yesterday, brushing off a disappointing durable goods update for April. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are trading above breakeven as they barrel toward a third straight weekly loss, while the Dow is heading for its fifth down week in a row.

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

midday market stats may 24

There's unusual interest in Chinese auto stock Nio Inc (NYSE:NIO), as the company prepares to report earnings next Tuesday morning, May 28. A number of large trades have crossed on both the put and call sides, with the June 3.50 put most popular overall. Meanwhile, bulls appear to be targeting the weekly 5/31 3.50-strike call. NIO shares were last seen trading down 1.7% at $3.86, coming off yesterday's all-time low of $3.83.

One stock on the rise today is Pinterest Inc (NYSE:PINS), trading 5.5% higher at $25.10. The Wall Street newcomer is trying to break a five-day losing streak, coming off its lowest close ever yesterday. In the meantime, new positions are opening at the weekly 6/7 27-strike call.

pinterest stock price may 24

Just adding to retail's bad week, Foot Locker, Inc. (NYSE:FL) is one of the worst stocks today after earnings, down 16.9% at $43.93, and earlier hitting a 52-week low of $43.04. This puts FL shares below a previous floor at the $45 area, and leaves the retailer's market cap below $5 billion for the time being.

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners