Real-time equity news
1730 ET Options risk gauge lights up as traders seek safety net
The CBOE Volatility Index, Wall Street's favorite measure of investor anxiety known as the VIX, jumped 8.41 percent to 15.99, accompanied by a decline in the S&P 500 index late in the session. U.S. stocks slipped on Monday, as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.
Over the past two sessions, the VIX has behaved in an unusual manner. The VIX, the SPX and VIX futures on Friday were all higher at one time during the session and again this occurred on Monday morning, said optionMonster analyst Chris McKhann.
It is typical to see a relatively higher VIX on Monday but it is unusual to see the VIX stray from its typical inverse relationship with the SPX. 'This tell us that investors are buying protection in the U.S. options market even before stocks gave up its gains on Monday,' McKhann said. 'It could be that institutional investors are preparing a pullback,'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1708 ET 02May2011-Bin Laden rally gives way to long
term doubts
U.S. stocks slipped on Monday, as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.
The impact of bin Laden's death by U.S. forces on financial markets prompted a quick flurry of buying, which was viewed as an emotional response. For details, see.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1543 ET 02May2011 Exelon option bulls scoop call options
Exelon Corp, the largest U.S. nuclear power plant operator, fell 1.02 prcent to $41.72. But in options, it appears the bulls are back as 15,000 January $50 calls were snapped up for 25 cents per contract, said optionMonster analyst David Russell on the firm's website.
'The power-generation sector has been showing signs of life recently as names such as NRG Energy, Calpine and Dynegy push higher,' he said. 'Exelon has been a laggard, especially amid concerns about nuclear plants following the disaster in Japan.' But he noted the stock has been slowly grinding higher since last spring and now seems to be trying to move above its
200
day moving average -- something it really has not been able to do since 2008. Monday's call buying is interesting because it gives plenty of time for the performance to kick in, and in a decently liquid name, Russell said. Open interest in the January $50 strike is 5,248 and it looks like opening buying, said WhatsTrading.com options strategist Frederic Ruffy. The contract is almost 20 percent out-of-money with a delta of 0.10. The June $43, July $44 and October $45 calls are seeing interest as well, Ruffy 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.
1730 ET Options risk gauge lights up as traders seek safety net
The CBOE Volatility Index, Wall Street's favorite measure of investor anxiety known as the VIX, jumped 8.41 percent to 15.99, accompanied by a decline in the S&P 500 index late in the session. U.S. stocks slipped on Monday, as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.
Over the past two sessions, the VIX has behaved in an unusual manner. The VIX, the SPX and VIX futures on Friday were all higher at one time during the session and again this occurred on Monday morning, said optionMonster analyst Chris McKhann.
It is typical to see a relatively higher VIX on Monday but it is unusual to see the VIX stray from its typical inverse relationship with the SPX. 'This tell us that investors are buying protection in the U.S. options market even before stocks gave up its gains on Monday,' McKhann said. 'It could be that institutional investors are preparing a pullback,'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1708 ET 02May2011-Bin Laden rally gives way to long
term doubts
U.S. stocks slipped on Monday, as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.
The impact of bin Laden's death by U.S. forces on financial markets prompted a quick flurry of buying, which was viewed as an emotional response. For details, see.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1543 ET 02May2011 Exelon option bulls scoop call options
Exelon Corp, the largest U.S. nuclear power plant operator, fell 1.02 prcent to $41.72. But in options, it appears the bulls are back as 15,000 January $50 calls were snapped up for 25 cents per contract, said optionMonster analyst David Russell on the firm's website.
'The power-generation sector has been showing signs of life recently as names such as NRG Energy, Calpine and Dynegy push higher,' he said. 'Exelon has been a laggard, especially amid concerns about nuclear plants following the disaster in Japan.' But he noted the stock has been slowly grinding higher since last spring and now seems to be trying to move above its
200
day moving average -- something it really has not been able to do since 2008. Monday's call buying is interesting because it gives plenty of time for the performance to kick in, and in a decently liquid name, Russell said. Open interest in the January $50 strike is 5,248 and it looks like opening buying, said WhatsTrading.com options strategist Frederic Ruffy. The contract is almost 20 percent out-of-money with a delta of 0.10. The June $43, July $44 and October $45 calls are seeing interest as well, Ruffy 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.