Real-time equity news
U.S. stock market report
1718 11June2010 CBOE Volatility Index has lowest close since May 13 -----------------------------------------------------------------------------
The CBOE Volatility Index, Wall Street's favorite barometer of investor anxiety, fell 5.82 percent to 28.79 on Friday, its lowest close since May 13. 'The VIX has only closed below 30 twice since May 13, and even then, just barely under, pricing at 29.68 into the Memorial Day weekend on May 27 and 29.46 on June 3,' said optionMonster founder Jon Najarian in comments on his firm's website. The VIX is a 30-day risk forecast of stock market volatility conveyed by S&P 500 index option prices. It typically runs inversely to the S&P benchmark. 'The S&P 500 index has found a trading range between 1,050 and 1,106,' said Dan Deming, VIX options trader at Stutland Equities. As long as those levels are maintained, volatility is expected to continue to subside. 'So what you are seeing now is less demand for volatility protection, especially at these levels. But if the S&P 500 breaks below 1,050, which is viewed as key support, then another spike up in volatility could be seen,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1655 11June2010 Akami call options heat up as shares rise -----------------------------------------------------------------------------
Akamai Technologies Inc option trading is suggesting further gains in the stock. Akamai supports online media companies by navigating less-congested routes over the Web and whose customers include Apple Inc and News Corp's MySpace. Akamai on Thursday acquired Velocitude, which boosts their cloud capabilities to mobile devices. Its shares on Friday rose 3.43 percent to $44.33, just off the 52-week high of $44.40. In the options market, about 22,000 calls and 4,383 puts traded, according to Trade Alert. The big trade of the day involved the August $43 and $46 calls. A trader bought 4,635 August $43 calls for $3.96 and sold an equal number of August $46 calls for $2.54, said optionMonster analyst Chris McKhann in comments on the website. The volume was less than open interest at the lower strike, but this still looks like a bullish call spread with both positions newly opened, he said. If that is the case, then the net debit was $1.42, which is the maximum risk if AKAM is below $43 at expiration. The spread can make a maximum gain of $1.58 if shares are above $46, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1650 ET 11June2010-Wall St gains on chip makers in late advance -------------------------------------------------------------------------
U.S. stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy's health after an unexpected drop in retail sales.
National Semiconductor Corp rose 5 percent to $14.21 a day after it forecast margins and revenues above estimates after a horrible 2009. The Philadelphia Semiconductor index rose 1.4 percent.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1449 ET 11June2010-Microsoft strangle sees rangebound action -----------------------------------------------------------------------------
Shares of Microsoft Corp (MSFT), the world's largest software firm, are up 44 cents to $25.44. In the options, the October $25-$28 strangle was sold for $2.47, and traded 20,000 times on CBOE. Volume exceeds previous open interest in the puts and 'so this is likely a new position in anticipation of rangebound action in the months ahead,' said WhatsTrading.com option strategist Frederic Ruffy. The analyst also noted that Microsoft option implied volatility is down about 6 percent to 29.5 percent today, compared to a 52-week high and low of 38.5 percent and 19.5 percent, respectively.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1417 ET 11June2010-Traders circle Philip Morris put options -----------------------------------------------------------------------------
A number of traders favored put options in Philip Morris International , which sells Marlboro cigarettes and other brands internationally. Its shares fell 2.64 percent to $43.92 in afternoon trade. In the options patch, front-month June put options, which go off the board next Friday, turned busy.
'There doesn't appear to be any company specific news on the cigarette maker, but some players seem to be bracing for additional weakness in the stock ahead of next week's expiration,' said WhatsTrading.com option strategist Frederic Ruffy. Earlier in the session, the June $40 put strike traded 1,555 times (78 percent Ask) and the June $43 put strike, 1,300 times. (52 percent Ask). In all, 9,777 puts and 6,128 calls traded so far in PM, according to Trade Alert.
The demand for options sent the stock's option implied volatility up 3.5 percent to 29 percent.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1340 ET 11June2011-Pfizer bulls eye call options, sell puts -----------------------------------------------------------------------------
Pfizer Inc shares rose 3.29 percent to $15.40, one day after Bristol-Myers Squibb Co and its partner Pfizer said they will halt a big study of their experimental blood clot preventer apixaban due to clear evidence that it prevented stroke among patients with atrial fibrillation.
Options traders populating Pfizer initiated a number of bullish transactions to position for continued share price appreciation, said Interactive Brokers Group equity options analyst Caitlin Duffy. Optimists picked up 3,800 calls at the June $16 strike for 7 cents each. Investors long the calls make money if shares exceed the break-even price of $16.07 by expiration next Friday. She noted bulls sold about 3,300 puts at the July $14 strike to receive a premium of 16 cents apiece, and shed another 1,500 puts at the July $15 strike for 41 cents each. Put sellers may be ditching downside protection because they do not expect shares to reverse course ahead of July expiration. Otherwise, traders may be initiating outright bullish bets by selling puts to pocket premium. Bulls hoping to catch a rally picked up 2,100 July $16 calls, she added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1250 ET 11June2010-BP option volume brisk, implied volatility eases -----------------------------------------------------------------------------
U.S.-listed shares of BP Plc rose 3.05 percent to $33.78 as UK officials made supportive comments, even as scientists doubled estimates of the Gulf of Mexico's oil spill. In the options, BP implied volatility has eased for the second day, said WhatsTrading.com strategist Frederic Ruffy. About 108,000 puts and 77,000 calls traded by early afternoon, according to Trade Alert. The top trade is a seller of 12,000 Jan $20 puts at $2.15. Implied volatility fell 10 percent to 84.5 percent and now down about 28 percent from record highs seen Wednesday, he said. The recovery in the shares is accompanied by less fear going forward as its implied volatility has fallen, said Interactive Brokers Group market analyst Andrew Wilkinson. 'There has been a lot of scaremongering this week with loyal BP shareholders being forced to ditch their holdings as its share price wilted,' Wilkinson said. 'Much of the fear has been politically driven and investors were concerned that BP would have to conserve cash and stop paying its dividend. What is becoming apparent is that this might be more of a courtesy rather than a forced necessity.'
Reuters Messaging: doris.frankel.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.
U.S. stock market report
1718 11June2010 CBOE Volatility Index has lowest close since May 13 -----------------------------------------------------------------------------
The CBOE Volatility Index, Wall Street's favorite barometer of investor anxiety, fell 5.82 percent to 28.79 on Friday, its lowest close since May 13. 'The VIX has only closed below 30 twice since May 13, and even then, just barely under, pricing at 29.68 into the Memorial Day weekend on May 27 and 29.46 on June 3,' said optionMonster founder Jon Najarian in comments on his firm's website. The VIX is a 30-day risk forecast of stock market volatility conveyed by S&P 500 index option prices. It typically runs inversely to the S&P benchmark. 'The S&P 500 index has found a trading range between 1,050 and 1,106,' said Dan Deming, VIX options trader at Stutland Equities. As long as those levels are maintained, volatility is expected to continue to subside. 'So what you are seeing now is less demand for volatility protection, especially at these levels. But if the S&P 500 breaks below 1,050, which is viewed as key support, then another spike up in volatility could be seen,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1655 11June2010 Akami call options heat up as shares rise -----------------------------------------------------------------------------
Akamai Technologies Inc option trading is suggesting further gains in the stock. Akamai supports online media companies by navigating less-congested routes over the Web and whose customers include Apple Inc and News Corp's MySpace. Akamai on Thursday acquired Velocitude, which boosts their cloud capabilities to mobile devices. Its shares on Friday rose 3.43 percent to $44.33, just off the 52-week high of $44.40. In the options market, about 22,000 calls and 4,383 puts traded, according to Trade Alert. The big trade of the day involved the August $43 and $46 calls. A trader bought 4,635 August $43 calls for $3.96 and sold an equal number of August $46 calls for $2.54, said optionMonster analyst Chris McKhann in comments on the website. The volume was less than open interest at the lower strike, but this still looks like a bullish call spread with both positions newly opened, he said. If that is the case, then the net debit was $1.42, which is the maximum risk if AKAM is below $43 at expiration. The spread can make a maximum gain of $1.58 if shares are above $46, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1650 ET 11June2010-Wall St gains on chip makers in late advance -------------------------------------------------------------------------
U.S. stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy's health after an unexpected drop in retail sales.
National Semiconductor Corp rose 5 percent to $14.21 a day after it forecast margins and revenues above estimates after a horrible 2009. The Philadelphia Semiconductor index rose 1.4 percent.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1449 ET 11June2010-Microsoft strangle sees rangebound action -----------------------------------------------------------------------------
Shares of Microsoft Corp (MSFT), the world's largest software firm, are up 44 cents to $25.44. In the options, the October $25-$28 strangle was sold for $2.47, and traded 20,000 times on CBOE. Volume exceeds previous open interest in the puts and 'so this is likely a new position in anticipation of rangebound action in the months ahead,' said WhatsTrading.com option strategist Frederic Ruffy. The analyst also noted that Microsoft option implied volatility is down about 6 percent to 29.5 percent today, compared to a 52-week high and low of 38.5 percent and 19.5 percent, respectively.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1417 ET 11June2010-Traders circle Philip Morris put options -----------------------------------------------------------------------------
A number of traders favored put options in Philip Morris International , which sells Marlboro cigarettes and other brands internationally. Its shares fell 2.64 percent to $43.92 in afternoon trade. In the options patch, front-month June put options, which go off the board next Friday, turned busy.
'There doesn't appear to be any company specific news on the cigarette maker, but some players seem to be bracing for additional weakness in the stock ahead of next week's expiration,' said WhatsTrading.com option strategist Frederic Ruffy. Earlier in the session, the June $40 put strike traded 1,555 times (78 percent Ask) and the June $43 put strike, 1,300 times. (52 percent Ask). In all, 9,777 puts and 6,128 calls traded so far in PM, according to Trade Alert.
The demand for options sent the stock's option implied volatility up 3.5 percent to 29 percent.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1340 ET 11June2011-Pfizer bulls eye call options, sell puts -----------------------------------------------------------------------------
Pfizer Inc shares rose 3.29 percent to $15.40, one day after Bristol-Myers Squibb Co and its partner Pfizer said they will halt a big study of their experimental blood clot preventer apixaban due to clear evidence that it prevented stroke among patients with atrial fibrillation.
Options traders populating Pfizer initiated a number of bullish transactions to position for continued share price appreciation, said Interactive Brokers Group equity options analyst Caitlin Duffy. Optimists picked up 3,800 calls at the June $16 strike for 7 cents each. Investors long the calls make money if shares exceed the break-even price of $16.07 by expiration next Friday. She noted bulls sold about 3,300 puts at the July $14 strike to receive a premium of 16 cents apiece, and shed another 1,500 puts at the July $15 strike for 41 cents each. Put sellers may be ditching downside protection because they do not expect shares to reverse course ahead of July expiration. Otherwise, traders may be initiating outright bullish bets by selling puts to pocket premium. Bulls hoping to catch a rally picked up 2,100 July $16 calls, she added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1250 ET 11June2010-BP option volume brisk, implied volatility eases -----------------------------------------------------------------------------
U.S.-listed shares of BP Plc rose 3.05 percent to $33.78 as UK officials made supportive comments, even as scientists doubled estimates of the Gulf of Mexico's oil spill. In the options, BP implied volatility has eased for the second day, said WhatsTrading.com strategist Frederic Ruffy. About 108,000 puts and 77,000 calls traded by early afternoon, according to Trade Alert. The top trade is a seller of 12,000 Jan $20 puts at $2.15. Implied volatility fell 10 percent to 84.5 percent and now down about 28 percent from record highs seen Wednesday, he said. The recovery in the shares is accompanied by less fear going forward as its implied volatility has fallen, said Interactive Brokers Group market analyst Andrew Wilkinson. 'There has been a lot of scaremongering this week with loyal BP shareholders being forced to ditch their holdings as its share price wilted,' Wilkinson said. 'Much of the fear has been politically driven and investors were concerned that BP would have to conserve cash and stop paying its dividend. What is becoming apparent is that this might be more of a courtesy rather than a forced necessity.'
Reuters Messaging: doris.frankel.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.