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U.S. stock market report 1327 ET 20May2011 Cautious traders shop for Retail ETF puts
Cautious traders are picking up puts on the SPDR S&P Retail Trust following disappointing results from Aeropostale Inc and Gap Inc .
By early afternoon on Friday, the exchange-traded fund's volume was 2.8 times greater than typical levels with about 64,000 contracts traded as puts outpaced calls by a factor of 7.03:1, according to Trade Alert. XRT shares fell 1.25 percent to $52.65. In options action, 16,500 December $44 XRT puts were bought as an opening position at $1.36 per contract on the International Securities Exchange. The position might add to a similar block opened this week when 15,000 traded at $1.27, said WhatsTrading.com options strategist Frederic Ruffy.
A June $47-$51 put ratio spread was apparently bought at 43 cents. which appears to be a bearish play or hedge that offers a maximum payoff if shares fall to $47 through June expiration, he said. Meanwhile in Ann Inc,, the parent of Ann Taylor, call sellers are looking for downside, said optionmonster analyst David Russell, citing the sale of 20,000 June $28 calls for $1.45. The activity reflects a belief that Ann is unlikely to rebound in the next four weeks, and locks in an exit price for $29.45 on the shares, Russell said. Ann's gross margin fell in the first quarter..
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1220 ET 20May2011 Traders circle calls on gold ETF, miners
Call volume in several gold-related stocks and an exchange-traded fund popped up on Friday as the metal rose.
Near midday, Yamana Gold Inc's option turnover was more than double with about 29,000 calls and 1,643 puts traded. The July $14 and $15 calls were bought 6,500 times each against the sale of October $13 and $14 calls for a net
94
cent credit, said Trade Alert president Henry Schwartz. Its shares slipped 10 cents to $12.18. Gold Fields Ltd's volume was 12.2 times greater than typical levels and included 25,000 calls and only 332 puts. The stock gained 1.66 percent to $15.83.
Schwartz noted that paper sold the July $17-$20 GFI call spread which traded 20,000 times for 1.45, and that the $17 strikes were opening positions. In the SPDR Gold Trust, the May $146 and $147 calls are active, with an investor scooping up a few thousand May $147 calls for 4 and 5 cents each when the fund was near its lows, he said. The fund was up 1.22 percent to $147.44. Gold rose on Friday, helped by a soft dollar. For details, see .
Reuters Messaging: doris.frankel.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.
U.S. stock market report 1327 ET 20May2011 Cautious traders shop for Retail ETF puts
Cautious traders are picking up puts on the SPDR S&P Retail Trust following disappointing results from Aeropostale Inc and Gap Inc .
By early afternoon on Friday, the exchange-traded fund's volume was 2.8 times greater than typical levels with about 64,000 contracts traded as puts outpaced calls by a factor of 7.03:1, according to Trade Alert. XRT shares fell 1.25 percent to $52.65. In options action, 16,500 December $44 XRT puts were bought as an opening position at $1.36 per contract on the International Securities Exchange. The position might add to a similar block opened this week when 15,000 traded at $1.27, said WhatsTrading.com options strategist Frederic Ruffy.
A June $47-$51 put ratio spread was apparently bought at 43 cents. which appears to be a bearish play or hedge that offers a maximum payoff if shares fall to $47 through June expiration, he said. Meanwhile in Ann Inc,, the parent of Ann Taylor, call sellers are looking for downside, said optionmonster analyst David Russell, citing the sale of 20,000 June $28 calls for $1.45. The activity reflects a belief that Ann is unlikely to rebound in the next four weeks, and locks in an exit price for $29.45 on the shares, Russell said. Ann's gross margin fell in the first quarter..
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1220 ET 20May2011 Traders circle calls on gold ETF, miners
Call volume in several gold-related stocks and an exchange-traded fund popped up on Friday as the metal rose.
Near midday, Yamana Gold Inc's option turnover was more than double with about 29,000 calls and 1,643 puts traded. The July $14 and $15 calls were bought 6,500 times each against the sale of October $13 and $14 calls for a net
94
cent credit, said Trade Alert president Henry Schwartz. Its shares slipped 10 cents to $12.18. Gold Fields Ltd's volume was 12.2 times greater than typical levels and included 25,000 calls and only 332 puts. The stock gained 1.66 percent to $15.83.
Schwartz noted that paper sold the July $17-$20 GFI call spread which traded 20,000 times for 1.45, and that the $17 strikes were opening positions. In the SPDR Gold Trust, the May $146 and $147 calls are active, with an investor scooping up a few thousand May $147 calls for 4 and 5 cents each when the fund was near its lows, he said. The fund was up 1.22 percent to $147.44. Gold rose on Friday, helped by a soft dollar. For details, see .
Reuters Messaging: doris.frankel.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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