Stocks on the move
Real-time Equity news
U.S. stock market report
1735 ET 03Dec2009
US economic, earnings diary for Dec. 4
Economic data on tap for Friday includes the monthly non-farm payrolls report for November and factory orders for October.
On the earnings front, third-quarter results are expected from Big Lots Inc , which specializes in selling excess merchandise.
For details, see and
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1721 ET 03Dec2009
Massive call spreads pumps up VIX option volume
The CBOE Volatility Index, or VIX, rose 6.34 percent to 22.46 as U.S. stocks dropped as some nervousness arose the day before the monthly payrolls data. In VIX volatility products, about 635,000 VIX call options traded, more than six times their average daily volume after two massive call spreads were apparently sold by the same institution. The premiums collected for the January 2010 spread amounted to $16.9 million and for the February 2010 spread was $20.3 million, said Trade Alert president Henry Schwartz. 'Both positions are profitable if the VIX stays below the 22.50 call strike and may be a view of a lower volatility environment next year or might be a hedge against a long volatility position in a different asset,' he said. The investor sold 130,000 January 22.50-25 spreads for a $1.30 credit to open a new position. Later, 140,000 February 22.50-25 spreads were sold to open for $1.45, he said. In all, about 717,000 VIX options traded, three times the norm. VIX options are priced off of VIX futures.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1510 ET 03Dec2009-Take
Two shares slump, sees profit shortfall
Shares of Take-Two Interactive Software Inc slid more than 20 percent in after hours trading after the video game publisher said results for the past quarter would fall short of its expectations due to slow sales of its Baseball games and some holiday season games.
Take-Two, best known for its 'Grand Theft Auto' line, shed 20.5 percent to $8.68 after the closing bell. For details, see
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1650 ET 03Dec2009
Wall St dragged by services data, job worries
U.S. stocks fell after data showed the vast U.S. services sector unexpectedly shrank last month, while investors grew nervous ahead of Friday's monthly payrolls report.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1554 ET 03Dec2009-Heavy options volume spotted on A
Power; shares gain
A-Power Energy Generation Systems Ltd shares gained 6.4 percent to $16.38 despite an adjusted third-quarter profit that missed analysts' expectations, hurt by higher expenses. For details, see
The share rise appears to be the result of a short squeeze as the stock has become difficult to borrow. Investors who sell securities 'short' borrow shares and then sell them, waiting for the stock to fall so they can buy the shares back at the lower price, return them to the lender and pocket the difference. The stock recovered from a 7 percent drop before the opening bell. A-Power looks like 'a bit of a short squeeze' following the earnings report, said independent options trader Steve Smith. Its options volume is three times the daily average with the Dec $12.50 put strike as the most active, drawing 3,600 contracts traded earlier and 93 percent bid side, said WhatsTrading.com strategist Frederic Ruffy.
The stock had a nice run moving from $12 to $18 and shorts probably used the lower opening to cover positions. 'Since shares are difficult to borrow, bears could not generate selling pressure on the disappointing results,' he said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1514 ET 03Dec2009
Bearish investors shed Aeropostale Dec call options: analyst
Shares of teen retailer Aeropostale Inc fell 11 percent to $29.17 after it gave a fourth-quarter outlook that fell short of estimates and posted November sales numbers below expectations. For details, see
Bearish investors shed call options in the December contract, suggesting the stock is not likely to recover by expiration in a couple of weeks, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note to clients. Traders sold 1,600 calls at the December $30 strike for an average premium of 86 cents apiece. Option bears also shed 1,900 calls at the lower December $29 strike for $1.03 each. Investors selling the call options retain the premiums received as long as shares trade beneath the strike prices described through expiration, Wilkinson said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2009. 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.
Real-time Equity news
U.S. stock market report
1735 ET 03Dec2009
US economic, earnings diary for Dec. 4
Economic data on tap for Friday includes the monthly non-farm payrolls report for November and factory orders for October.
On the earnings front, third-quarter results are expected from Big Lots Inc , which specializes in selling excess merchandise.
For details, see and
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1721 ET 03Dec2009
Massive call spreads pumps up VIX option volume
The CBOE Volatility Index, or VIX, rose 6.34 percent to 22.46 as U.S. stocks dropped as some nervousness arose the day before the monthly payrolls data. In VIX volatility products, about 635,000 VIX call options traded, more than six times their average daily volume after two massive call spreads were apparently sold by the same institution. The premiums collected for the January 2010 spread amounted to $16.9 million and for the February 2010 spread was $20.3 million, said Trade Alert president Henry Schwartz. 'Both positions are profitable if the VIX stays below the 22.50 call strike and may be a view of a lower volatility environment next year or might be a hedge against a long volatility position in a different asset,' he said. The investor sold 130,000 January 22.50-25 spreads for a $1.30 credit to open a new position. Later, 140,000 February 22.50-25 spreads were sold to open for $1.45, he said. In all, about 717,000 VIX options traded, three times the norm. VIX options are priced off of VIX futures.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1510 ET 03Dec2009-Take
Two shares slump, sees profit shortfall
Shares of Take-Two Interactive Software Inc slid more than 20 percent in after hours trading after the video game publisher said results for the past quarter would fall short of its expectations due to slow sales of its Baseball games and some holiday season games.
Take-Two, best known for its 'Grand Theft Auto' line, shed 20.5 percent to $8.68 after the closing bell. For details, see
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1650 ET 03Dec2009
Wall St dragged by services data, job worries
U.S. stocks fell after data showed the vast U.S. services sector unexpectedly shrank last month, while investors grew nervous ahead of Friday's monthly payrolls report.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1554 ET 03Dec2009-Heavy options volume spotted on A
Power; shares gain
A-Power Energy Generation Systems Ltd shares gained 6.4 percent to $16.38 despite an adjusted third-quarter profit that missed analysts' expectations, hurt by higher expenses. For details, see
The share rise appears to be the result of a short squeeze as the stock has become difficult to borrow. Investors who sell securities 'short' borrow shares and then sell them, waiting for the stock to fall so they can buy the shares back at the lower price, return them to the lender and pocket the difference. The stock recovered from a 7 percent drop before the opening bell. A-Power looks like 'a bit of a short squeeze' following the earnings report, said independent options trader Steve Smith. Its options volume is three times the daily average with the Dec $12.50 put strike as the most active, drawing 3,600 contracts traded earlier and 93 percent bid side, said WhatsTrading.com strategist Frederic Ruffy.
The stock had a nice run moving from $12 to $18 and shorts probably used the lower opening to cover positions. 'Since shares are difficult to borrow, bears could not generate selling pressure on the disappointing results,' he said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1514 ET 03Dec2009
Bearish investors shed Aeropostale Dec call options: analyst
Shares of teen retailer Aeropostale Inc fell 11 percent to $29.17 after it gave a fourth-quarter outlook that fell short of estimates and posted November sales numbers below expectations. For details, see
Bearish investors shed call options in the December contract, suggesting the stock is not likely to recover by expiration in a couple of weeks, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note to clients. Traders sold 1,600 calls at the December $30 strike for an average premium of 86 cents apiece. Option bears also shed 1,900 calls at the lower December $29 strike for $1.03 each. Investors selling the call options retain the premiums received as long as shares trade beneath the strike prices described through expiration, Wilkinson said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2009. 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.