Disney, U.S.-China Tensions Drag Dow

Tensions between the U.S. and China are weighing on the market

Deputy Editor
May 4, 2020 at 12:13 PM
facebook twitter linkedin


As heavy-weight Walt Disney (DIS) and U.S.-China tensions permeate throughout the broader market, the Dow Jones Industrial Average (DJI) is down around 200 points midday. A steep selloff in the airline sector is also dragging stocks, with the S&P 500 Index (SPX) just below breakeven in today's session. On the flip side, the Nasdaq Composite (IXIC) is inching its way higher thanks to a lift out of tech.

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

  • Warren Buffet's big airline sector bust.
  • Beverage name hikes stake in pot stock.  
  • Plus, Blackberry sees a surge in calls; APDN gets a boost from animal-tested vaccine; and CATS taking a dive on the charts.

mmc chart may 4

One stock seeing notable options activity today is BlackBerry Ltd (NYSE:BB). Up 3.3% to trade at $4.20 at last check, the software company has seen 25,000 calls cross the tape so far, 11 times what's typically seen. Most popular is the weekly 5/8 4.50-strike call, where new positions are being opened. Though its unclear what's causing this surge in calls, the company has been attempting to recover from its record low of $2.70 on March 18, but ironically, has been pressured by the overhead $4.50 level. In simpler terms, call traders may be expecting BlackBerry stock to breakout above this long-term resistance by the end of the week when the weekly options expire.

Scaling the Nasdaq today is Applied DNA Sciences Inc (NASDAQ:APDN), up 58.1% at $10.48 at last check. This rise comes after the company reported positive data from its COVID-19 vaccine trial in mice. APDN is now gapping above former pressure at the $9 region. 

On the other end of the spectrum is Catasys Inc (NASDAQ:CATS), last seen down 10.4% at $24.88. The reason for this sudden dip is unknown, as until last week, CATS had been on a steady climb up the charts from its March 23 low of $8.55. Today also has the stock dropping below its 20-day moving average for the first time since late March.

New CATS mmc May 4


 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners