Real-time equity news
U.S. stock market report
1734 ET 14Sept2010
Economic diary for September 15
Economic data expected for Wednesday includes import and export prices for August, the Empire State Manufacturing index for September and industrial production for August. Reuters Messaging:rm://Charles.mikolajczak.thomsonreuters.com@reuters.net
1622 ET 14Sept2010 Radware buyout report stirs bullish option trades
Option traders employed bullish trades in Radware Ltd as takeover speculation swirled around the stock. Shares of Israel-based Radware jumped more than 40 percent after Israeli business publication Globes reported the Internet traffic management company was in talks to be sold to either Hewlett-Packard or IBM for about $945 million. For details, see. Radware shares rose 38.46 percent to $38.59 and its option volume was 30.8 times the norm with about 14,000 calls and 5,173 puts traded, according to Trade Alert. 'Not surprisingly, options traders reacted by initiating bullish stances on the stock,' said Interactive Brokers Group equity options analyst Caitlin Duffy in a report. Traders bought at least 3,200 calls at the Sept $35 strike for an average premium of $3.30 each, she added. Investors long calls make money if Radware's shares exceed the average break-even price of $38.30 through September expiration. Other bulls sold roughly 1,600 puts at the Sept $30 strike to pocket premium of 45 cents each. Put sellers keep the full premium received on the sale as long as Radware's shares exceed $30 through September expiration this Friday. she said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1556 ET 14Sept010 Option player seeks safety in Corporate Bond Fund
A block of 10,000 March $100 puts appeared to have been purchased at 97.5 cents per contract in an exchange-traded fund that holds debt of major U.S. stocks such as Wal-Mart, Verizon and Wells Fargo, said WhatsTrading.com options strategist Frederic Ruffy. The shares of the iShares iBoxx Investment Grade Corporate Bond Fund closed up 53 cents to $111.53. 'We're hearing a buyer initiated the trade and, if so, appears to be adding to a bearish position from one week ago when 20,000 contracts were bought to open at $1.025 (per contract),' Ruffy added. During that time, Ruffy noted it appeared to be an opening buyer and possibly setting up a hedge and/or bracing for weakness in the corporate bond market over the next two quarters. According to Reuters data, volume in the March $100 put now stands at 10,012 contracts against previous open interest of 22,232 contracts, easily the biggest option position in the fund, Ruffy said. The ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the corporate bond market as defined by the iBoxx $Liquid Investment Grade Index.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1451 ET 14Sept2010
Bullish options player positions for Volcano Corp rebound
A contrarian options investor is positioning for a rebound in the shares of medical device maker Volcano Corp, wrote Interactive Brokers Group equity options analyst Caitlin Duffy in a note. The investor initiated a three-legged bullish combination play in the January 2011 contract. Volcano's shares fell as much as 13.2 percent this morning to log an intraday low of $22.27. They are now down 8.16 percent to $23.55. The company said Monday it will offer $100 million convertible notes due 2015. For details, see
The options player sold 2,500 puts at the $20 strike for premium of $1.45 each, bought the same number of calls at the $22.5 strike for $3.10 apiece, and shedded 2,500 calls at the $30 strike at 40 cents each, resulting in a net cost of $1.25 per contract. Thus, the investor stands ready to accumulate profits should shares trade above the effective break-even price of $23.95 by expiration day. Meanwhile, the overall reading of options implied volatility on Volcano jumped 17.7 percent to 50.23 percent during the session, Duffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net; Editing by Andrew Hay
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
1734 ET 14Sept2010
Economic diary for September 15
Economic data expected for Wednesday includes import and export prices for August, the Empire State Manufacturing index for September and industrial production for August. Reuters Messaging:rm://Charles.mikolajczak.thomsonreuters.com@reuters.net
1622 ET 14Sept2010 Radware buyout report stirs bullish option trades
Option traders employed bullish trades in Radware Ltd as takeover speculation swirled around the stock. Shares of Israel-based Radware jumped more than 40 percent after Israeli business publication Globes reported the Internet traffic management company was in talks to be sold to either Hewlett-Packard or IBM for about $945 million. For details, see. Radware shares rose 38.46 percent to $38.59 and its option volume was 30.8 times the norm with about 14,000 calls and 5,173 puts traded, according to Trade Alert. 'Not surprisingly, options traders reacted by initiating bullish stances on the stock,' said Interactive Brokers Group equity options analyst Caitlin Duffy in a report. Traders bought at least 3,200 calls at the Sept $35 strike for an average premium of $3.30 each, she added. Investors long calls make money if Radware's shares exceed the average break-even price of $38.30 through September expiration. Other bulls sold roughly 1,600 puts at the Sept $30 strike to pocket premium of 45 cents each. Put sellers keep the full premium received on the sale as long as Radware's shares exceed $30 through September expiration this Friday. she said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1556 ET 14Sept010 Option player seeks safety in Corporate Bond Fund
A block of 10,000 March $100 puts appeared to have been purchased at 97.5 cents per contract in an exchange-traded fund that holds debt of major U.S. stocks such as Wal-Mart, Verizon and Wells Fargo, said WhatsTrading.com options strategist Frederic Ruffy. The shares of the iShares iBoxx Investment Grade Corporate Bond Fund closed up 53 cents to $111.53. 'We're hearing a buyer initiated the trade and, if so, appears to be adding to a bearish position from one week ago when 20,000 contracts were bought to open at $1.025 (per contract),' Ruffy added. During that time, Ruffy noted it appeared to be an opening buyer and possibly setting up a hedge and/or bracing for weakness in the corporate bond market over the next two quarters. According to Reuters data, volume in the March $100 put now stands at 10,012 contracts against previous open interest of 22,232 contracts, easily the biggest option position in the fund, Ruffy said. The ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the corporate bond market as defined by the iBoxx $Liquid Investment Grade Index.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1451 ET 14Sept2010
Bullish options player positions for Volcano Corp rebound
A contrarian options investor is positioning for a rebound in the shares of medical device maker Volcano Corp, wrote Interactive Brokers Group equity options analyst Caitlin Duffy in a note. The investor initiated a three-legged bullish combination play in the January 2011 contract. Volcano's shares fell as much as 13.2 percent this morning to log an intraday low of $22.27. They are now down 8.16 percent to $23.55. The company said Monday it will offer $100 million convertible notes due 2015. For details, see
The options player sold 2,500 puts at the $20 strike for premium of $1.45 each, bought the same number of calls at the $22.5 strike for $3.10 apiece, and shedded 2,500 calls at the $30 strike at 40 cents each, resulting in a net cost of $1.25 per contract. Thus, the investor stands ready to accumulate profits should shares trade above the effective break-even price of $23.95 by expiration day. Meanwhile, the overall reading of options implied volatility on Volcano jumped 17.7 percent to 50.23 percent during the session, Duffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net; Editing by Andrew Hay
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.