Real-time equity news
U.S. stock market report 1725 EST 10Feb2011 Traders exchange 1.51 million Cisco options
Traders exchanged about 1.5 million options on Cisco Systems Inc as shares tumbled 14.16 percent to $18.92, a day after the top network equipment maker reported weaker margins. For details, see .
The volume was 7.4 times greater than the average daily turnover as 949,000 calls and 561,000 puts traded on Thursday, according to option analytics firm Trade Alert.
It was the second busiest day for option trading on Cisco over the past three years. Volume swelled to a high on Nov. 11, 2010, when 994,000 calls and 585,000 puts traded on the day after Cisco reported earnings.
Cisco's overall option volume is 45 percent of its open interest of 3.35 million contracts. Average daily volume in terms of open interest is normally 10 to 12 percent, Trade Alert data show. Options sentiment was mixed.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1415 ET 10Feb2011
Options play on S&P 500 ETF suggest sharp drop
A trade on one of the most traded equity-based options pointed a sharp drop in the S&P index in the next few months. According to a trade made on the SPDR S&P 500 exchange-traded fund, a trader was betting the index would drop to $120 by May expiration, down 9 percent from the current price of $132.17. The ETF, also known as 'Spyders', tracks the performance of the S&P 500 and on average trades more than 1 million a day.
The trader bought 20,000 May $130 puts for $3.81 and at the same sold 40,000 of the May $120 puts for $1.47, according to Chris McKhann, analyst at optionMonster.com. This put ratio spread cost 87 cents, which will be lost if the position is held until expiration and the ETF remains above $130. The trader would be able to take maximum profit of about $18 million if the ETF drops to $120, he said. 'This was unusual because the volume at both strikes was more than open interest and almost all of the trading in the SPY is in the front-month expirations,' he said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1403 ET 10Feb2011
More than 1 mln Cisco options change hands
Traders exchanged more than one million options on Cisco Systems Inc as shares dropped 13.2 percent to $19.13, a day after the network equipment maker reported weaker margins. For details, see
The volume was 5.7 times greater than the average daily turnover as about 718,000 calls and 448,000 puts traded by late afternoon, according to option analytics firm Trade Alert.
So far it is the second busiest day for option trading on Cisco over the past three years. Volume swelled to a new high on Nov. 11, the day after earnings when 994,000 calls and 585,000 puts traded. Cisco is also currently tied with option trading on the popular SPDR S&P 500 exchange fund, Trade Alert data showed. Trade Alert data show Cisco's overall option volume is 35 percent of its open interest of 3.35 million contracts. Average daily volume in terms of open interest is normally 10 to 12 percent.
Meanwhile, sentiment is mixed. With Cisco shares down sharply, some investors took a bearish stance in the near term by selling February $19 and $20 strike calls and liquidating bullish positions on the disappointing news, said Frederic Ruffy, options strategist at WhatsTrading.com. In the morning session, a number of investors bought the March $18 puts, bracing for more losses in the shares. On the other hand, some investors have taken a longer term bullish view and picked up the May $20 calls, 'hoping that today's move in the stock is an overreaction,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1202 ET 10Feb2011
Option bulls scoop up GameStop calls
Video game retailer GameStop Corp has been basing out ever since the 2008 market crash, and now the option bulls are stepping in, said optionMonster analyst David Russell on the firm's website. The firm's tracking systems detected the purchase of more than 4,000 March $20 calls, with the big chunks pricing for $1.05 to $1.07 per contract. The February $21 calls are also active for 9 cents apiece although volume is below open interest. Scattered activity was seen in the March and April $22 calls, said WhatsTrading.com options strategist Frederic Ruffy.
In all about 22,000 calls and 1,144 puts traded in GameStop by midday, four times greater than the average daily norm, according to Trade Alert. Directional sentiment based on order flow was 69 percent bullish. The flurry of activity helped lift the stock's option implied volatility, a key component of an options price and a function of expectations for further stock movement. Implied volatility rose 8 percent to 40 percent, 'as it appears that players in the options market are bracing for GME shares to run higher in the weeks/months ahead,' Ruffy said. GameStop rose 1.87 percent to $20.07 near midday and is trying to recover some of the 14 percent loss suffered since Jan. 3, Ruffy added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2011. 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 1725 EST 10Feb2011 Traders exchange 1.51 million Cisco options
Traders exchanged about 1.5 million options on Cisco Systems Inc as shares tumbled 14.16 percent to $18.92, a day after the top network equipment maker reported weaker margins. For details, see .
The volume was 7.4 times greater than the average daily turnover as 949,000 calls and 561,000 puts traded on Thursday, according to option analytics firm Trade Alert.
It was the second busiest day for option trading on Cisco over the past three years. Volume swelled to a high on Nov. 11, 2010, when 994,000 calls and 585,000 puts traded on the day after Cisco reported earnings.
Cisco's overall option volume is 45 percent of its open interest of 3.35 million contracts. Average daily volume in terms of open interest is normally 10 to 12 percent, Trade Alert data show. Options sentiment was mixed.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1415 ET 10Feb2011
Options play on S&P 500 ETF suggest sharp drop
A trade on one of the most traded equity-based options pointed a sharp drop in the S&P index in the next few months. According to a trade made on the SPDR S&P 500 exchange-traded fund, a trader was betting the index would drop to $120 by May expiration, down 9 percent from the current price of $132.17. The ETF, also known as 'Spyders', tracks the performance of the S&P 500 and on average trades more than 1 million a day.
The trader bought 20,000 May $130 puts for $3.81 and at the same sold 40,000 of the May $120 puts for $1.47, according to Chris McKhann, analyst at optionMonster.com. This put ratio spread cost 87 cents, which will be lost if the position is held until expiration and the ETF remains above $130. The trader would be able to take maximum profit of about $18 million if the ETF drops to $120, he said. 'This was unusual because the volume at both strikes was more than open interest and almost all of the trading in the SPY is in the front-month expirations,' he said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1403 ET 10Feb2011
More than 1 mln Cisco options change hands
Traders exchanged more than one million options on Cisco Systems Inc as shares dropped 13.2 percent to $19.13, a day after the network equipment maker reported weaker margins. For details, see
The volume was 5.7 times greater than the average daily turnover as about 718,000 calls and 448,000 puts traded by late afternoon, according to option analytics firm Trade Alert.
So far it is the second busiest day for option trading on Cisco over the past three years. Volume swelled to a new high on Nov. 11, the day after earnings when 994,000 calls and 585,000 puts traded. Cisco is also currently tied with option trading on the popular SPDR S&P 500 exchange fund, Trade Alert data showed. Trade Alert data show Cisco's overall option volume is 35 percent of its open interest of 3.35 million contracts. Average daily volume in terms of open interest is normally 10 to 12 percent.
Meanwhile, sentiment is mixed. With Cisco shares down sharply, some investors took a bearish stance in the near term by selling February $19 and $20 strike calls and liquidating bullish positions on the disappointing news, said Frederic Ruffy, options strategist at WhatsTrading.com. In the morning session, a number of investors bought the March $18 puts, bracing for more losses in the shares. On the other hand, some investors have taken a longer term bullish view and picked up the May $20 calls, 'hoping that today's move in the stock is an overreaction,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1202 ET 10Feb2011
Option bulls scoop up GameStop calls
Video game retailer GameStop Corp has been basing out ever since the 2008 market crash, and now the option bulls are stepping in, said optionMonster analyst David Russell on the firm's website. The firm's tracking systems detected the purchase of more than 4,000 March $20 calls, with the big chunks pricing for $1.05 to $1.07 per contract. The February $21 calls are also active for 9 cents apiece although volume is below open interest. Scattered activity was seen in the March and April $22 calls, said WhatsTrading.com options strategist Frederic Ruffy.
In all about 22,000 calls and 1,144 puts traded in GameStop by midday, four times greater than the average daily norm, according to Trade Alert. Directional sentiment based on order flow was 69 percent bullish. The flurry of activity helped lift the stock's option implied volatility, a key component of an options price and a function of expectations for further stock movement. Implied volatility rose 8 percent to 40 percent, 'as it appears that players in the options market are bracing for GME shares to run higher in the weeks/months ahead,' Ruffy said. GameStop rose 1.87 percent to $20.07 near midday and is trying to recover some of the 14 percent loss suffered since Jan. 3, Ruffy added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2011. 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.