Dismal Market Sentiment Pushes VIX Higher

Stocks are continuing to tumble, the Dow Jones Industrial Average (DJI) down 485 points, earlier shedding more than 600. The Nasdaq Composite Index (IXIC) is also sporting triple-digit losses, while the S&P 500 Index (SPX) trails deep in the red as well. Despite all three indexes eyeing healthy gains for 2024 that just miss record levels, both the Dow and S&P are on track to post monthly drops. Meanwhile, the market's "fear gauge," or Cboe Volatility Index (VIX), is on pace for a third consecutive pop.

mmcchartdec30

Options bulls are blasting Faraday Future Intelligent Electric Inc (Nasdaq: FFIE) stock today, as it experiences a surge in volatility, though the catalyst remains unclear. So far, 55,000 calls and 24,000 puts have been exchanged -- 18 times the average volume typically seen at this point. The weekly 1/3 2025 1.50-strike put is the most popular contract, where new positions are being opened. At last glance, FFIE was up 50.5% at $2.63, hitting its highest levels since late September.

Traws Pharma (Nasdaq: TRAW) is down 44% at $7.51 at last glance, making its mark as one of the worst performers on the Nasdaq this afternoon. The pharma stock is gapping lower after announcing financing as much as $72.6 million from healthcare investors to aid in its respiratory and bird flu oral therapy development. Despite touching an eight-month high of $5.46 on Dec. 23, TRAW is looking to close the year with a 56% deficit.

One of the worst performers on the New York Stock Exchange (NYSE) NuScale Power Corp (NYSE: SMR) is down 8.6% at $17.84 at last glance, extending its correction following several days of outperformance. Despite today's pullback, the formerly resistant $17.60 level has moved in as a floor, with longer-term support looming at the 150-day moving average as well. For 2024, SMR has surge 436% higher.

mmcsmr