S&P and NASDAQ dip into the red

Dow industrial average is still negative on the day

The S&P and the NASDAQ index is back into the red, joining the Dow industrial average with a little lower in our to go in trading. For the week, the major indices are up marginally:

• S&P index is up 0.77%
• NASDAQ index is up 1.24%
• Dow industrial average is up 0.69%

What will the last hour bring for the major indices.

Yesterday there was an interesting play in the PayPal 300 calls settling today. According to Mike Khouw on CNBCs Options Action, 32,000 all contracts with a strike price of $300 was purchased for around $2.50. Admittedly, the price of PayPal was near $300 but closed at around $285.

The price of PayPal is currently up over $12 today and trades at $297.72. The price of the 300 calls would need to settle at $302.50 or above for the buyers yesterday to make money. Is there another run to the upside for PayPal before the end of week? Time will tell but the trade sure took a unexpected route to the finish line.

PS The S&P and NASDAQ are back in the black after the quick dip with the S&P up 4 points while the NASDAQ index now up 17.6 points.