Real-time equity news
U.S. stock market report
1726 ET 05Aug2010
Annaly put volume soars, traders brace for move
Traders exchanged about 85,000 put options in mortgage real estate investment trust Annaly Capital Management Inc, more than 10 times their average daily volume. That compares to only 9,191 calls traded, according to Trade Alert. The put action included a buyer of 9,300 October $15 puts at 25 cents each, said WhatsTrading.com option strategist Frederic Ruffy. The strike's volume expanded to 24,215 contracts vs 15,037 open interest, Reuters data show. Interest in puts was across many expiration months, with most of the focus on the $16 to $18 strikes. The January $10 put strike also attracted interest. Volatility rose along with the put demand. Implied volatility rallied 24 percent to 26 percent, Ruffy said. There was no apparent news on the stock. 'But the order flow seems to reflect expectations for short-term volatility in the share price of the New York-based REIT,' Ruffy said. Directional sentiment based on option order flow was 51 percent bearish, Trader Alert data show.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1539 ET 05Aug2010-Commodity
related stocks move on Russian export ban
Shares of agribusiness group Archer Daniels Midland Co and agricultural processor Bunge Ltd rose more than 5 percent on Thursday amid expectations that their wheat exports will be boosted by the worst drought on record in Russia forcing the country to ban grain exports. Shares of fertilizer maker Potash Corp and its smaller North American rivals gained as well. For details, see
Consuming nations that have depended on Russia for their wheat supplies could turn to the United States -- the world's top wheat exporter -- for supplies in view of Russia's ban that was announced by Prime Minister Vladimir Putin on Thursday.
Shares of meat companies like Tyson Foods however fell as higher prices for grains will raise their cost of production and in turn crimp their profit margins.
Several meat producers are lower today, perhaps due to the disruption of grain exports from Russia, said WhatsTrading.com option strategist Frederic Ruffy.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1538 ET 05Aug2010
Option bulls eye Texas Roadhouse Dec calls
Casual dining chain Texas Roadhouse Inc is attracting highly unusual option activity with option volume far exceeding normal levels and nearly two times greater than its total listed option open interest, said Patrick Mortimer, director of option trading at Pipeline Trading Systems. He noticed the focus was on the December $12.50 and $15 calls with 3,000 and 5,000 contracts trading, respectively. 'Almost all of today's activity is opening transactions with over 80 percent of the activity in both strikes taking place on the offers,' Mortimer said. 'The net delta/share equivalence of today's option activity equals half of today's stock volume of 956,000 shares.' The company on Monday posted a quarterly profit in line with market expectations and raised its fiscal 2010 earnings outlook. For details, see. It appears some investors are looking for continued growth heading into the end of 2010, Mortimer said. Thursday's option volume was 287 times greater that usual levels with 9,471 calls and only 12 puts traded in Texas Roadhouse, according to Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1517 ET 05Aug2010
Agricultural ETF option volume pops up
Agricultural commodities are in focus after the worst drought in more than 100 years in Russia forced the country to ban exports. The Powershares DB Agricultural Fund fell 16 cents to $26.19 after hitting a high of $26.74. The exchange-traded fund, designed to track prices of corn, wheat, and other agricultural products, has rallied 14.4 percent over the past two months,, said Joe Cusick, senior market analyst at optionsXpress. 'Options traders are taking notice,' he added. The fund's options volume is 10.4 times the average daily turnover, with about 36,000 calls and 2,202 puts traded by late afternoon, according to Trade Alert. Cusick said the top trade is an October $27-$29 call spread, which traded 12,000 times on the Nasdaq PHLX exchange. 'The spread was traded between customers, according to a source on the floor. So, while one investor took the bullish spread, the other sold the spread and is holding a bearish position,' Cusick said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1458 ET 05Aug2010
Advanced Auto Parts volume boosted by put buyers
Advanced Auto Parts rose 50 cents to $53.86. In the options market, 9,840 put options traded in the stock during the afternoon session, which is 37 times normal and compares to just 50 calls, said WhatsTrading.com option strategist Frederic Ruffy. Morning trades included buyers of August $50 puts at 45 cents per contract. In the strike, 2,244 contracts traded and ISEE data indicate that the majority of those contracts, 1,175, traded on the International Securities Exchange and are opening customer buyers, he added. More recently, Ruffy said one strategist initiated a Sept $50-$55 (2X1) put ratio spread at $1.15 net debit, which traded 2,500 times on CBOE. The bearish flow comes ahead of auto parts retailer's Aug. 11 earnings.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1350 05Aug2010
Contrarian player sees rebound in Veeco shares
One strategist executed a bullish ratio call spread on Veeco Instruments Inc despite a 12 percent decline in the shares. Veeco fell 12.08 percent to $40.02 following a newspaper report out of Taiwan that said flat-panel makers are placing fewer orders in the LED sector, said Interactive Brokers Group equity options analyst Caitlin Duffy. Veeco's biggest business is through the sale of equipment to make LEDs, or light-emitting diodes. It appears the investor picked up 6,500 calls at the Sept $41 strike for an average premium of $3.05 each, and sold 13,000 calls at the higher Sept $45 strike for $1.36 apiece. Average net premium paid to purchase the spread was about 33 cents per contract. The investor stands ready to make money should Veeco's shares reverse course and rebound 3.95 percent off today's low of $39.76 to surpass the break-even price of $41.33 by Sept expiration. The trader walks away with maximum potential profits of $3.67 per contract as long as stock jumps 13.2 percent to settle at $45.00 at expiration, Duffy said.
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
1726 ET 05Aug2010
Annaly put volume soars, traders brace for move
Traders exchanged about 85,000 put options in mortgage real estate investment trust Annaly Capital Management Inc, more than 10 times their average daily volume. That compares to only 9,191 calls traded, according to Trade Alert. The put action included a buyer of 9,300 October $15 puts at 25 cents each, said WhatsTrading.com option strategist Frederic Ruffy. The strike's volume expanded to 24,215 contracts vs 15,037 open interest, Reuters data show. Interest in puts was across many expiration months, with most of the focus on the $16 to $18 strikes. The January $10 put strike also attracted interest. Volatility rose along with the put demand. Implied volatility rallied 24 percent to 26 percent, Ruffy said. There was no apparent news on the stock. 'But the order flow seems to reflect expectations for short-term volatility in the share price of the New York-based REIT,' Ruffy said. Directional sentiment based on option order flow was 51 percent bearish, Trader Alert data show.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1539 ET 05Aug2010-Commodity
related stocks move on Russian export ban
Shares of agribusiness group Archer Daniels Midland Co and agricultural processor Bunge Ltd rose more than 5 percent on Thursday amid expectations that their wheat exports will be boosted by the worst drought on record in Russia forcing the country to ban grain exports. Shares of fertilizer maker Potash Corp and its smaller North American rivals gained as well. For details, see
Consuming nations that have depended on Russia for their wheat supplies could turn to the United States -- the world's top wheat exporter -- for supplies in view of Russia's ban that was announced by Prime Minister Vladimir Putin on Thursday.
Shares of meat companies like Tyson Foods however fell as higher prices for grains will raise their cost of production and in turn crimp their profit margins.
Several meat producers are lower today, perhaps due to the disruption of grain exports from Russia, said WhatsTrading.com option strategist Frederic Ruffy.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1538 ET 05Aug2010
Option bulls eye Texas Roadhouse Dec calls
Casual dining chain Texas Roadhouse Inc is attracting highly unusual option activity with option volume far exceeding normal levels and nearly two times greater than its total listed option open interest, said Patrick Mortimer, director of option trading at Pipeline Trading Systems. He noticed the focus was on the December $12.50 and $15 calls with 3,000 and 5,000 contracts trading, respectively. 'Almost all of today's activity is opening transactions with over 80 percent of the activity in both strikes taking place on the offers,' Mortimer said. 'The net delta/share equivalence of today's option activity equals half of today's stock volume of 956,000 shares.' The company on Monday posted a quarterly profit in line with market expectations and raised its fiscal 2010 earnings outlook. For details, see. It appears some investors are looking for continued growth heading into the end of 2010, Mortimer said. Thursday's option volume was 287 times greater that usual levels with 9,471 calls and only 12 puts traded in Texas Roadhouse, according to Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1517 ET 05Aug2010
Agricultural ETF option volume pops up
Agricultural commodities are in focus after the worst drought in more than 100 years in Russia forced the country to ban exports. The Powershares DB Agricultural Fund fell 16 cents to $26.19 after hitting a high of $26.74. The exchange-traded fund, designed to track prices of corn, wheat, and other agricultural products, has rallied 14.4 percent over the past two months,, said Joe Cusick, senior market analyst at optionsXpress. 'Options traders are taking notice,' he added. The fund's options volume is 10.4 times the average daily turnover, with about 36,000 calls and 2,202 puts traded by late afternoon, according to Trade Alert. Cusick said the top trade is an October $27-$29 call spread, which traded 12,000 times on the Nasdaq PHLX exchange. 'The spread was traded between customers, according to a source on the floor. So, while one investor took the bullish spread, the other sold the spread and is holding a bearish position,' Cusick said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1458 ET 05Aug2010
Advanced Auto Parts volume boosted by put buyers
Advanced Auto Parts rose 50 cents to $53.86. In the options market, 9,840 put options traded in the stock during the afternoon session, which is 37 times normal and compares to just 50 calls, said WhatsTrading.com option strategist Frederic Ruffy. Morning trades included buyers of August $50 puts at 45 cents per contract. In the strike, 2,244 contracts traded and ISEE data indicate that the majority of those contracts, 1,175, traded on the International Securities Exchange and are opening customer buyers, he added. More recently, Ruffy said one strategist initiated a Sept $50-$55 (2X1) put ratio spread at $1.15 net debit, which traded 2,500 times on CBOE. The bearish flow comes ahead of auto parts retailer's Aug. 11 earnings.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1350 05Aug2010
Contrarian player sees rebound in Veeco shares
One strategist executed a bullish ratio call spread on Veeco Instruments Inc despite a 12 percent decline in the shares. Veeco fell 12.08 percent to $40.02 following a newspaper report out of Taiwan that said flat-panel makers are placing fewer orders in the LED sector, said Interactive Brokers Group equity options analyst Caitlin Duffy. Veeco's biggest business is through the sale of equipment to make LEDs, or light-emitting diodes. It appears the investor picked up 6,500 calls at the Sept $41 strike for an average premium of $3.05 each, and sold 13,000 calls at the higher Sept $45 strike for $1.36 apiece. Average net premium paid to purchase the spread was about 33 cents per contract. The investor stands ready to make money should Veeco's shares reverse course and rebound 3.95 percent off today's low of $39.76 to surpass the break-even price of $41.33 by Sept expiration. The trader walks away with maximum potential profits of $3.67 per contract as long as stock jumps 13.2 percent to settle at $45.00 at expiration, Duffy said.
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.