Shares of World Wrestling Entertainment (WWE) plummeted (-43%) today! The stock is currently down $-8.67 and has been trading in a fifty two week range of $8.96-$31.98. Year to date the stock has underperformed the market. World Wrestling Entertainment dropping after failing to secure another TV network deal. After launching its WWE network subscription service it essentially cannibalized the company’s current business model. World Wrestling Entertainment’s new business model is similar to that of a Netflix (NFLX), with a library of wrestling matches and pay-per-view type matches. Investors are unhappy about the new business model and the company’s inability to generate new and consistent subscriber growth. If we look at (WWE) on the Ichimoku Cloud, the stock has been trading in a very bearish channel. The stock is currently trading below the cloud.

The headlines today are filled with mostly bearish stories and grim reminders of when “the sky fell” in the 2008 market free fall. Today we saw soft predictions of a market top. After all analyst would hate to be wrong yet again about another market correction. Those who sold the so called “top” last year, missed out on so much of this raging bull market. As a trader it doesn’t matter who’s right; it doesn’t matter who gets the gold star for predicting the top. It doesn’t matter if the market is bullish or bearish; the only thing that matters is that your moving with the market. All of this bearish talk today and uncertainty about the market creates volatility. Volatility creates opportunity as a trader. Remember the market takes the stairs up and the elevator down in a bearish market. Don’t be afraid of the bear, some of the best days as a trader are created by uncertainty in the market, volatility, and bearish turns in the market. Today the markets are a little bit choppy but for the most part unchanged overall as investors look to pick which side of the market they want to be on.

MBIA (MBI) financial services company that is currently trading at $12.23. MBIA is trading in in a fifty two week range of $11.96-12.78. The stock has been slightly under performing the market with shares rallying 2.57%. Options traders seem to think the stock will stay above $12. We saw 1800 June 12 puts being sold for .33 cents. By selling puts, this trader is obligated to buy the stock if it is at or below the $12 strike before expatriation. If the stock stays at $12 or above, the trader will keep the $59,400 in premium. As long as the stock stays above $11.65 by June expiration, this trader will make money off the premium sold. A trader believes that (MBI) is setting up to stay above $12 strike before June.

Yahoo (YHOO) internet search giant and major shareholder of Alibaba, is currently trading at $34.53. Yahoo (YHOO) is currently trading in a $23.82-41.72 fifty two week range. Yahoo has been under performing the market as shares have fallen 14.74% year to date. This year Yahoo has generated poor earnings performance from its core internet business. However Yahoo’s 24% stake in the up and coming Alibaba has given a boost to yahoo’s quarterly reports and stock. With Alibaba’s upcoming IPO, Options traders have a bullish outlook on Yahoo. Yesterday we saw a trader buy 19,105 YHOO Friday 5/30 weekly calls at the $34.00 strike for $1.37 premium. Yahoo is currently trading below the Ichimoku Cloud; however with the bullish order flow in Yahoo and the hype surrounding the Alibaba IPO, I believe Yahoo is setting up for a long position.

Block Trade: A trader bought 19105 (YHOO) 5/30 Weekly 34 calls.
Risk: $137 per one lot
Reward: Unlimited
Breakeven: $35.37

Tesaro (TSRO) is another biotech that is on fire this morning! Tesaro is up 16.83% this morning 5/12/14. Tesaro has been trading in a 52 week range of $22.15-51.95. Tesaro is currently trading below the ichimoku cloud at $27.67 up $3.66 today. Despite a weak chart, Tesaro is making headlines today with positive phase three Rolapitant results. Rolapitant is a new drug used to treat the side effects from chemotherapy. As I write this article (TSRO) continues to rip higher as another bull market biotech darling.

Twitter (TWTR) social media giant has bottomed near 52 week lows after it’s first two earnings misses. The stock is currently trading in a 52 week range of $29.51-74.53. Twitter looks bearish on the Ichimoku Cloud as it trades way below the cloud at $33.09. After last weeks IPO lockup period ended share plummeted more than 18%. The charts for (TWTR) are weak and fifty two week lows usually go lower. With that said, we could be near the bottom in Twitter, as the new quarter begins and all the negative news has passed. Twitter is up about a dollar today as the stock tries to climb up from the bottom.