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U.S. stock market report 1723 ET 09Apr2010 Citi gets huge Jan 2012 put option trade
Citigroup attracted a huge options trade after an investor bought 180,000 January 2012 puts at the $2.50 line for 23 cents per contract, said WhatsTrading.com option strategist Frederic Ruffy. He surmised it could be closing position as the strike's open interest stood at 389,947 contracts. The trade was not tied to stock, according to a source on the exchange floor, Ruffy said. Citi shares rose 8 cents to $4.55 and have rallied 43 percent over the past two months. The stock's option implied volatility eased from 49 percent to 42 percent during that time, amid diminishing fears about problems in the financial world, he added. But he noted with the trade's focus on the 2012 contract, 'today's put buyer might be looking for the volatility to pick up during the second half of 2010 and into 2011.'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1700 09April2010
Wall St gains with energy shares, Dow touches 11,000
U.S. stocks rose with the Dow surpassing 11,000 for the first time in a year-and-a-half after Chevron's upbeat outlook and wholesale inventories data reinforced bets on an improving economy.
'Most investors acknowledge that the recession has ended, and the question facing the market now is, 'Are we moving from a recovery to sustainable growth?' said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. 'Economic data so far in April has been fairly encouraging.'
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1454 09April2010
NCR call action targets more gains
Shares of ATM maker NCR Corp edged up 2 cents to $15.24 in the afternoon session. 'The stock has been rocketing higher over the last two weeks to the highest level since 2008,' said optionMonster analyst Chris McKhann in comments on the Web site. In the options, traders snapped up nearly 9,000 May $15 calls on volume exceeding the average daily call volume. 'The big blocks went off in seconds, all for 95 cents,' McKhann said. 'This is a bet that NCR can continue this bull run and break through resistance that goes back to November of 2008.' Although the shares have already have an impressive run, these calls are now in-the-money and since the price has tacked on $1 in the last week, 'we know it is possible,' McKhann added. The options implied volatility was also pushed higher by 5 percent from Thursday's levels, said Josh Belanger, founder of OptionSIZZLE.com. 'Shares are holding up here looking to form a bull flag after breaking higher Tuesday,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1436 ET 09April2010-Options traders buy Disney calls as stock hit 52
wk high
Bullish traders populated the options field on Walt Disney Company as its shares surged 3.4 percent during the trading session to secure a new
52
week high of $36.88, said Caitlin Duffy, options analyst at Interactive Brokers. Near-term optimistic traders purchased 1,200 calls at the April $37 strike for an average premium of 16 cents apiece. Call-buyers at this strike make money if Disney's shares increase another 0.75 percent from the new
52-week high of $36.88 to surpass the average break
even price of $37.16 ahead of April expiration, Duffy said. Displays of bullish sentiment on the stock spread to the May contract where 10,000 put options were sold short at the May $35 strike for a premium of 52 cents each. The investor or investors responsible for the put selling action keep the full 52 cents premium as long as Disney's shares trade above $35.00 through expiration day next month.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1232 ET 09April2010-PREVIEW
Strong US earnings seen, but may be priced in
U.S. corporate earnings should top forecasts again in the first quarter, but the extent of the stock market's rally means investors are expecting a lot from companies.
Standard & Poor's 500 companies' first-quarter profits are seen up 36.8 percent versus a year ago, which would be a second straight quarter of year-over-year profit growth, according to Thomson Reuters data. The fourth quarter marked the first of year-over-year gains since 2007's second quarter.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1159 ET 9April2010
Palm shares rally on continued takeover rumors
Palm Inc shares jumped again on Friday, capping a volatile week in which the smartphone maker's stock has seesawed on options market chatter and takeover rumors.
Shares climbed 12 percent to $5.19 following reports that Taiwan's HTC Corp might be in talks to acquire the maker of Pre and Pixi phones, which also developed the WebOS operating system software.
For details, see
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. 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 1723 ET 09Apr2010 Citi gets huge Jan 2012 put option trade
Citigroup attracted a huge options trade after an investor bought 180,000 January 2012 puts at the $2.50 line for 23 cents per contract, said WhatsTrading.com option strategist Frederic Ruffy. He surmised it could be closing position as the strike's open interest stood at 389,947 contracts. The trade was not tied to stock, according to a source on the exchange floor, Ruffy said. Citi shares rose 8 cents to $4.55 and have rallied 43 percent over the past two months. The stock's option implied volatility eased from 49 percent to 42 percent during that time, amid diminishing fears about problems in the financial world, he added. But he noted with the trade's focus on the 2012 contract, 'today's put buyer might be looking for the volatility to pick up during the second half of 2010 and into 2011.'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1700 09April2010
Wall St gains with energy shares, Dow touches 11,000
U.S. stocks rose with the Dow surpassing 11,000 for the first time in a year-and-a-half after Chevron's upbeat outlook and wholesale inventories data reinforced bets on an improving economy.
'Most investors acknowledge that the recession has ended, and the question facing the market now is, 'Are we moving from a recovery to sustainable growth?' said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. 'Economic data so far in April has been fairly encouraging.'
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1454 09April2010
NCR call action targets more gains
Shares of ATM maker NCR Corp edged up 2 cents to $15.24 in the afternoon session. 'The stock has been rocketing higher over the last two weeks to the highest level since 2008,' said optionMonster analyst Chris McKhann in comments on the Web site. In the options, traders snapped up nearly 9,000 May $15 calls on volume exceeding the average daily call volume. 'The big blocks went off in seconds, all for 95 cents,' McKhann said. 'This is a bet that NCR can continue this bull run and break through resistance that goes back to November of 2008.' Although the shares have already have an impressive run, these calls are now in-the-money and since the price has tacked on $1 in the last week, 'we know it is possible,' McKhann added. The options implied volatility was also pushed higher by 5 percent from Thursday's levels, said Josh Belanger, founder of OptionSIZZLE.com. 'Shares are holding up here looking to form a bull flag after breaking higher Tuesday,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1436 ET 09April2010-Options traders buy Disney calls as stock hit 52
wk high
Bullish traders populated the options field on Walt Disney Company as its shares surged 3.4 percent during the trading session to secure a new
52
week high of $36.88, said Caitlin Duffy, options analyst at Interactive Brokers. Near-term optimistic traders purchased 1,200 calls at the April $37 strike for an average premium of 16 cents apiece. Call-buyers at this strike make money if Disney's shares increase another 0.75 percent from the new
52-week high of $36.88 to surpass the average break
even price of $37.16 ahead of April expiration, Duffy said. Displays of bullish sentiment on the stock spread to the May contract where 10,000 put options were sold short at the May $35 strike for a premium of 52 cents each. The investor or investors responsible for the put selling action keep the full 52 cents premium as long as Disney's shares trade above $35.00 through expiration day next month.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1232 ET 09April2010-PREVIEW
Strong US earnings seen, but may be priced in
U.S. corporate earnings should top forecasts again in the first quarter, but the extent of the stock market's rally means investors are expecting a lot from companies.
Standard & Poor's 500 companies' first-quarter profits are seen up 36.8 percent versus a year ago, which would be a second straight quarter of year-over-year profit growth, according to Thomson Reuters data. The fourth quarter marked the first of year-over-year gains since 2007's second quarter.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1159 ET 9April2010
Palm shares rally on continued takeover rumors
Palm Inc shares jumped again on Friday, capping a volatile week in which the smartphone maker's stock has seesawed on options market chatter and takeover rumors.
Shares climbed 12 percent to $5.19 following reports that Taiwan's HTC Corp might be in talks to acquire the maker of Pre and Pixi phones, which also developed the WebOS operating system software.
For details, see
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. 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.