STOCKS NEWS US-Economic diary for July 15

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1710 ET 14July2010
Economic diary for July 15

Economic data on tap for Thursday includes weekly initial claims, the producer prices index for June, the Empire State survey for July, industrial production for June and the Philadelphia Fed survey for July. See

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1701 ET 14July2010-Alcatel
Lucent call volume builds up this week

Telecom gear maker Alcatel-Lucent call volume has picked up this week, with 20,000 calls trading Monday, followed by 80,000 Tuesday, and call open interest nearly doubling to 145,000 contracts over those two days, said Trade Alert president Henry Schwartz.

The majority of the volume is in the December $2.50 and $3 strikes, likely a position ahead of the earnings release expected in late July. Clearing data confirms that Tuesday's
20
cent buyer of the December $3 calls was a customer account, he said. In the strike, 45,000 contracts traded to open.

On Wednesday, ALU shares on the NYSE rose 2 cents to $2.80 and call volume was three times normal, with 20,000 contracts on the tape with Dec $2.50 and $3 strikes again leading the flow, according to Trade Alert.

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1650 ET 14July2010-S&P breaks 6
day win streak, Fed policy minutes weigh

U.S. stocks broke a six-day winning streak on Wednesday, with the S&P 500 ending a hair lower after the Federal Reserve suggested additional measures may be needed to combat a weakening economy.

Optimism over the start of earnings season limited declines after Intel Corp reported better-than-expected results on signs of renewed corporate spending. Shares of Intel rose 1.7 percent to $21.36, helping keep the Dow and Nasdaq slightly higher.

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1640 ET 14July2010
Analyst flags unusual option action in Skechers

Skechers USA Inc attracted unusual option action late on Wednesday. Shares fell 3.6 percent to $34.77 after hitting a low of $33.69 midday.

About 22,000 calls and 4,835 puts traded in the stock, which is 8.3 times the usual volume, Trade Alert data show.

One player appeared to have bought the August $36-$40 call spread at $1.22, which traded 1,445 times on the International Securities Exchange, said WhatsTrading.com option strategist Frederic Ruffy. He surmised this might be a roll down in strikes and has traded multiple times. He also noted the October $40 and $50 calls attracted interest, perhaps closing trades as shares lose ground Wednesday. There was no apparent news on the stock. The company's earnings are expected around July 22, he said. The stock's option implied volatility -- a barometer of anxiety, rose about 5 percent to 65.5 percent.

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1625 ET 14July2010
Lorillard put options turn busy

Notable put activity during the first half of the session on Newport cigarette maker Lorillard Inc indicated that some investors expect shares to decline ahead of July options expiration on Friday, said Interactive Brokers Group equity options analyst Caitlin Duffy in a report to clients. Shares of Lorillard spent the majority of the session in the red but recovered and rose 7 cents to $74.72. Earlier, option players picked up about 3,500 puts at the July $72.50 strike for an average premium of 23 cents per contract, she said. The strike's volume expanded to 4,297 contracts against open interest of 1,983. Put buyers would make money if shares fall 3.4 percent from the closing share price to breach the average break-even point of $72.27 by expiration, she said. Overall option volume in LO was three times greater than normal levels with about 4,635 puts and 551 calls traded, according to Trade Alert.

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(Editing by Andrew Hay) Keywords: MARKETS STOCKSNEWS

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