On Tuesday, the Dow rose 111.90 points (0.77 percent) to set a record close at 14,559.65, surpassing the previous one set on March 5. ?
For the S&P 500, its 1,563.77 close, up 12.08 percent (0.78 percent) was 1.38 points shy of ending the day at an all-time high. This came on investor optimism on?positive home price data and manufacturing.?
The VIX dropped?7.1 percent to close at 12.77.
After yesterday’s interest in Dell options, traders had their eyes on Research in Motion Ltd. (NASDAQ:BBRY)’s upcoming fourth quarter earnings report on Thursday.?
This will come on the heels of last week’s launch of the new BlackBerry Z10 smartphone. It didn’t exactly excite investors and upon its U.S. Friday launch through Monday’s trading, the company’s stock’s price has dropped 12 percent.
On Tuesday, options traders got into the action and placed some big bets on Research in Motion as they await the quarterly numbers, reported The Wall Street Journal’s Kaitlyn Kiernan.?
Ryan Detrick, senior technical strategist at Schaeffer?s Investment Research said to WSJ, ?This is a company that can move significantly, and in the near-term, the options market is predicting some fireworks.??
Options trades included one that the company’s shares would rise greater than 7.5% by week’s end. This came on a 10,000 weekly call to purchase one million Research In Motion shares at $15 each through Friday’s end. The options had cost 56 cents per share.?
There were also trades in short-term weekly option $14.50 calls at 81 cents per share. This has Research In Motion increasing at a minimum of 5.8% by Friday.?
Analysts have estimated the company will report a 29 cent a share loss on revenue at ?$2.84 billion.
On Tuesday, Research In Motion closed up 1.62% to $14.46.