STOCKS NEWS US-Peru ETF put volume builds before election

Real-time equity news

U.S. stock market report 1440 ET 20May2011 Peru ETF put action builds ahead of election

Option traders are taking a cautious stance on the iShares MSCI All Peru Capped Index Fund. The exchange-traded fund's shares fell 1.69 percent to $43.61. U.S.-listed shares of Peruvian companies also declined as worries escalated about policy changes that could occur after the country's presidential election.. The ETF's option volume is 3.2 times the norm with about 2,550 puts and only 164 calls traded late on Friday. The fund's options turnover is typically light, averaging volume of 518 calls and 339 puts per day, according to Trade Alert. The bearish activity comes in advance of the June 5 election between left-wing nationalist Ollanta Humala and his right-wing opponent, Keiko Fujimori, who has been gaining in polls of late. The markets in Peru had been worried Humala would take a radical approach to governing, much like his former political mentor, Venezuela's president, Hugo Chavez. Fujimori has been ahead in six consecutive polls, and two more polls - from Ipsos Apoyo and Datum Internacional - are due out Sunday evening.

Reuters Messaging: [e-mail]


1418 ET 20May2011 Tyson option traders eye more gains

Tyson Foods option traders hope to catch additional gains in the shares of the largest U.S. meat company, producing beef, pork and chicken. 'The bulls are raising the henhouse,' snapping up more than 5,000 October $19 TSN calls, said optionMonster analyst David Russell on the firm's website.

Most of the large blocks are priced for $1.35, but premiums then pushed to $1.40. Traders are picking up the October $18 calls for $1.85 and the June $19 calls for 45 cents per contract, optionMonster data shows. Overall options volume in Tyson is four times the typical levels with about 13,000 calls and only 1,016 puts traded by mid-afternoon, according to Trade Alert. 'The stock had a nice pullback earlier in the month, but now is bouncing at the 200-day exponential moving average and the 100-day simple moving average,' Russell said.

The stock rose 1.45 percent to $18.83. Tyson on May 9 reported second-quarter profits of 42 cents per share, unchanged from a year ago, but down 1 cent from Wall Street estimates. Since then, Tyson said it will buy back 22.5 million shares of Class A shares. The company said this week that more price increases are coming.

Reuters Messaging: [e-mail]


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: [e-mail]


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: [e-mail]
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.