Real-time equity news
1400 ET 02May2011 Las Vegas Sands traders pick up weekly calls
Some options players hit the like button on Las Vegas Sands Corp's short-term calls ahead of the casino operator's first-quarter earnings late on Tuesday, said Interactive Brokers Group options analyst Caitlin Duffy. Its shares rose 0.60 percent to $47.29. A number of pre-earnings speculators targeted the weeklies to position for extended share price gains ahead of Friday's expiration. Investors purchased around 2,250 May $48 weekly strike calls for $1.45 apiece. These call holders profit if the stock moves above the break-even point of $49.45 by Friday. Bulls paid an average premium of 77 cents per contract to pick up roughly 1,600 calls at the higher May weekly $50 strike price. Meanwhile, she said investors populating the May weekly $52.5 strike sold 1,300 calls to collect 28 cents each in premium. Call selling at this strike may represent a near-term ceiling on shares for some investors. Traders keep the premium pocketed as long as the stock fails to exceed $52.50 at expiration. Low-delta call buying occurred up at the May weekly $55 strike expiring this Friday where some 250 calls were picked up for 9 cents each, Duffy added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1334 ET 02May2011
Tenet May $6 puts eyed after bid is raised
A number of option investors in Tenet Healthcare Corp are apparently skeptical about a potential deal with rival hospital operator Community Health Systems.
Community Health on Monday raised its offer for Tenet by $1.75 a share to $7.25, saying it was its 'best and final' bid.. Tenet's stock option implied volatility is up and May $6 THC puts have traded 13,000 contracts. Out of that volume, 98 percent traded at the ask price, suggesting the contracts were bought 'as investors seem skeptical about the potential for a deal between the two managed care companies,' said Frederic Ruffy, options strategist at WhatsTrading.com. Tenet shares fell 3.46 percent to $6.69, and implied volatility in THC options rose 36 percent to 42 percent, Ruffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
U.S. stock market report
1219 ET 02May2011 Pre
earnings bull loads up on BMC calls
A block of 10,000 calls traded on BMC Software Inc late on Monday morning ahead of the business software maker's quarterly earnings set for May 4. Based on the 9 percent pop in implied volatility and the spike in share price at the time of the trade, it looks like a bullish opening buyer, said Patrick Mortimer, director of options trading at Pipeline Trading Systems. These August $60 strike options trade at 55 cents and will need BMC to rally nearly 20 percent by August expiry to begin to see any profits based on the current share value of $50.51.
The size of this trade has helped push BMC's total option volume to 17.3 times its daily average with about 18,000 calls traded versus just 114 puts by 11:53 a.m. EDT, according to Trade Alert. Meanwhile, the May $52.5, June $55 and August $55 calls attracted interest as well, said WhatsTrading.com options strategist Frederic Ruffy. The stock has notched a new 52-week low of $34.24 in July 2010, but has been grinding higher since that time and hit a new year high of $51.43 on April 6.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1201 ET 02May2011
Estimates for S&P 500 earnings increasing
Estimates for earnings for S&P 500 companies are up since the start of the reporting period, according to Thomson Reuters data. Earnings for the first quarter are now expected to rise 17.8 percent from a year ago. That compares with an April 1 forecast for an increase of 13 percent.
About 72 percent of companies are beating earnings esimates, in line with results in recent reporting periods, the data showed.
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Some options players hit the like button on Las Vegas Sands Corp's short-term calls ahead of the casino operator's first-quarter earnings late on Tuesday, said Interactive Brokers Group options analyst Caitlin Duffy. Its shares rose 0.60 percent to $47.29. A number of pre-earnings speculators targeted the weeklies to position for extended share price gains ahead of Friday's expiration. Investors purchased around 2,250 May $48 weekly strike calls for $1.45 apiece. These call holders profit if the stock moves above the break-even point of $49.45 by Friday. Bulls paid an average premium of 77 cents per contract to pick up roughly 1,600 calls at the higher May weekly $50 strike price. Meanwhile, she said investors populating the May weekly $52.5 strike sold 1,300 calls to collect 28 cents each in premium. Call selling at this strike may represent a near-term ceiling on shares for some investors. Traders keep the premium pocketed as long as the stock fails to exceed $52.50 at expiration. Low-delta call buying occurred up at the May weekly $55 strike expiring this Friday where some 250 calls were picked up for 9 cents each, Duffy added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1334 ET 02May2011
Tenet May $6 puts eyed after bid is raised
A number of option investors in Tenet Healthcare Corp are apparently skeptical about a potential deal with rival hospital operator Community Health Systems.
Community Health on Monday raised its offer for Tenet by $1.75 a share to $7.25, saying it was its 'best and final' bid.. Tenet's stock option implied volatility is up and May $6 THC puts have traded 13,000 contracts. Out of that volume, 98 percent traded at the ask price, suggesting the contracts were bought 'as investors seem skeptical about the potential for a deal between the two managed care companies,' said Frederic Ruffy, options strategist at WhatsTrading.com. Tenet shares fell 3.46 percent to $6.69, and implied volatility in THC options rose 36 percent to 42 percent, Ruffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
U.S. stock market report
1219 ET 02May2011 Pre
earnings bull loads up on BMC calls
A block of 10,000 calls traded on BMC Software Inc late on Monday morning ahead of the business software maker's quarterly earnings set for May 4. Based on the 9 percent pop in implied volatility and the spike in share price at the time of the trade, it looks like a bullish opening buyer, said Patrick Mortimer, director of options trading at Pipeline Trading Systems. These August $60 strike options trade at 55 cents and will need BMC to rally nearly 20 percent by August expiry to begin to see any profits based on the current share value of $50.51.
The size of this trade has helped push BMC's total option volume to 17.3 times its daily average with about 18,000 calls traded versus just 114 puts by 11:53 a.m. EDT, according to Trade Alert. Meanwhile, the May $52.5, June $55 and August $55 calls attracted interest as well, said WhatsTrading.com options strategist Frederic Ruffy. The stock has notched a new 52-week low of $34.24 in July 2010, but has been grinding higher since that time and hit a new year high of $51.43 on April 6.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1201 ET 02May2011
Estimates for S&P 500 earnings increasing
Estimates for earnings for S&P 500 companies are up since the start of the reporting period, according to Thomson Reuters data. Earnings for the first quarter are now expected to rise 17.8 percent from a year ago. That compares with an April 1 forecast for an increase of 13 percent.
About 72 percent of companies are beating earnings esimates, in line with results in recent reporting periods, the data showed.
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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