Real-time equity news
U.S. stock market report 1702 ET 12April2011 Some UUP option traders look for rebound in dollar
The PowerShares DB US Dollar Index Bullish Fund slipped 0.23 percent to $21.48 after notching a new year low of $21.43. The options volume on the exchange-traded fund was 2.8 times greater than typical levels as about 57,000 calls and 1,648 puts traded on Tuesday, according to Trade Alert. Traders favored the June $21 UUP calls, which changed hands 38,231 times with 78 percent of the volume on the ask price against open interest of 8,333, indicating new positions were initiated.
'It appears that opening buyers are driving the action and looking for a bounce in the dollar through mid-June,' said WhatsTrading.com options strategist Frederic Ruffy.
The UUP June $21 call is 48 cents in-the-money and has a delta of 0.70, he said.
The ETF tracks the performance of the dollar against a basket of other foreign currencies. The yen and Swiss franc gained roughly 1 percent against the dollar on Tuesday amid heightened risk aversion due to Japan's nuclear crisis and a slide in U.S. stocks. For details, see.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1630 ET 12Apr2011
Energy drives Wall St lower, Alcoa's results drag
U.S. stocks dropped on Tuesday on worries falling oil prices could set off a reversal in the high-flying energy sector, while Alcoa's leaner-than-expected revenue disappointed.
Energy stocks led the S&P 500's losses, with the S&P Energy Index down 3 percent. Strategists were already worried the rally in energy stocks may have gone too far ahead of earnings, and a drop in oil prices could spark an extended sell-off.
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1625 ET 12April2011-Schneider approaches Tyco about $30 bln deal
report
French engineering giant Schneider Electric has sent a letter outlining its interest in a $30 billion takeover of Tyco International Ltd to create the world's leading maker of security systems, the Daily Telegraph newspaper reported on its website on Tuesday. The shares closed up 7.4 percent at $52.33.
Reuters Messaging: edward.krudy@reuters.com@reuters.net
1616 ET 12April2011 Bearish put butterfly in S&P 500 ETF appears to be hedge
A massive put spread was transacted in the SPDR S&P 500 Trust on Tuesday, said Joe Cusick, senior market analyst at brokerage firm optionsXpress. The exchange-traded fund, which holds shares of the 500 S&P companies, closed down 0.77 percent at $131.45.
In SPY options, the spread known as a butterfly, was in the May puts. In this trade, Cusick said the investor sold 70,000 May $127 puts at $1.57 each for the body of the fly. They also bought 35,000 May $123 puts at 92 cents and purchased 35,000 May $131 puts at $2.76 apiece for the wings. This 1X2X1 May $123-$127-$131 put butterfly spread was initiated at a 54-cent debit.
'It's a bearish play, or perhaps a short-term hedge,' as the strategy makes its best profits if shares fall to $127 through the May expiration, which represents a market decline of about 3.3 percent, he said.
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 1702 ET 12April2011 Some UUP option traders look for rebound in dollar
The PowerShares DB US Dollar Index Bullish Fund slipped 0.23 percent to $21.48 after notching a new year low of $21.43. The options volume on the exchange-traded fund was 2.8 times greater than typical levels as about 57,000 calls and 1,648 puts traded on Tuesday, according to Trade Alert. Traders favored the June $21 UUP calls, which changed hands 38,231 times with 78 percent of the volume on the ask price against open interest of 8,333, indicating new positions were initiated.
'It appears that opening buyers are driving the action and looking for a bounce in the dollar through mid-June,' said WhatsTrading.com options strategist Frederic Ruffy.
The UUP June $21 call is 48 cents in-the-money and has a delta of 0.70, he said.
The ETF tracks the performance of the dollar against a basket of other foreign currencies. The yen and Swiss franc gained roughly 1 percent against the dollar on Tuesday amid heightened risk aversion due to Japan's nuclear crisis and a slide in U.S. stocks. For details, see.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1630 ET 12Apr2011
Energy drives Wall St lower, Alcoa's results drag
U.S. stocks dropped on Tuesday on worries falling oil prices could set off a reversal in the high-flying energy sector, while Alcoa's leaner-than-expected revenue disappointed.
Energy stocks led the S&P 500's losses, with the S&P Energy Index down 3 percent. Strategists were already worried the rally in energy stocks may have gone too far ahead of earnings, and a drop in oil prices could spark an extended sell-off.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1625 ET 12April2011-Schneider approaches Tyco about $30 bln deal
report
French engineering giant Schneider Electric has sent a letter outlining its interest in a $30 billion takeover of Tyco International Ltd to create the world's leading maker of security systems, the Daily Telegraph newspaper reported on its website on Tuesday. The shares closed up 7.4 percent at $52.33.
Reuters Messaging: edward.krudy@reuters.com@reuters.net
1616 ET 12April2011 Bearish put butterfly in S&P 500 ETF appears to be hedge
A massive put spread was transacted in the SPDR S&P 500 Trust on Tuesday, said Joe Cusick, senior market analyst at brokerage firm optionsXpress. The exchange-traded fund, which holds shares of the 500 S&P companies, closed down 0.77 percent at $131.45.
In SPY options, the spread known as a butterfly, was in the May puts. In this trade, Cusick said the investor sold 70,000 May $127 puts at $1.57 each for the body of the fly. They also bought 35,000 May $123 puts at 92 cents and purchased 35,000 May $131 puts at $2.76 apiece for the wings. This 1X2X1 May $123-$127-$131 put butterfly spread was initiated at a 54-cent debit.
'It's a bearish play, or perhaps a short-term hedge,' as the strategy makes its best profits if shares fall to $127 through the May expiration, which represents a market decline of about 3.3 percent, he said.
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.