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Dec 17, 2013

Well-timed bullish option bets seen in KKR Financial before deal

Dec 17 (Reuters) – Well-timed bullish option bets on
specialty finance company KKR Financial Holdings, placed
a month before a takeover announcement, have generated big paper
profits for a number of call positions.

KKR Financial shares jumped 30 percent to $12.34 on Tuesday
afternoon, one day after private equity firm KKR & Co LP
said it had agreed to buy the company in a $2.6 billion deal.

Nov 15, 2013

Twitter dominates action in busy U.S. options market

CHICAGO/NEW YORK (Reuters) – The first day of trading options in Twitter was an active one, with more than 50,000 contracts trading in less than two hours on Friday, a week after the social media name debuted in the equity market.

A total of 27,000 calls and 26,000 puts changed hands on Twitter Inc as of 11:13 a.m. EST, according to options analytics firm Trade Alert. Investors use options to bet on or hedge against a stock’s direction.

Nov 15, 2013

Options traders gear up to “strangle” and “straddle” Twitter

CHICAGO, Nov 15 (Reuters) – Traders itching to “strangle” or
“straddle” the newly launched shares of Twitter Inc
will finally get their chance on Friday when trading in the
social media company’s options launches on U.S. exchanges.

Just over a week after the stock’s initial public offering
and debut on the New York Stock Exchange, options market makers
will begin pricing and trading contracts to buy or sell Twitter
shares at various prices in the future.

Oct 25, 2013

Apple, Facebook options reflect hopes for stock gains

By Doris Frankel

(Reuters) – The options market is reflecting a higher probability of large upside moves in Apple Inc and Facebook Inc stock when both companies report quarterly earnings next week.

Stock of Apple – the largest U.S. company by market value – is down 1 percent since January 1 while Facebook shares are up 95 percent.

Oct 25, 2013

Analysis: Apple, Facebook options reflect hopes for stock gains

By Doris Frankel

(Reuters) – The options market is reflecting a higher probability of large upside moves in Apple Inc and Facebook Inc stock when both companies report quarterly earnings next week.

Stock of Apple – the largest U.S. company by market value – is down 1 percent since January 1 while Facebook shares are up 95 percent.

Oct 10, 2013

Put volume in iShares Japan ETF hits record on volatility outlook

Oct 10 (Reuters) – Option investors appear to be bracing
for more volatility in the Japanese equities market within the
next few weeks by trading options in combinations with stock on
the iShares MSCI Japan Index fund.

Heavy trading in the iShares MSCI Japan Index fund’s
November $11 strike puts sent put volume on the exchange-traded
fund to record levels earlier this week.

Oct 4, 2013

Debt ceiling worries spill into U.S. options market

By Doris Frankel and Angela Moon

(Reuters) – With the U.S. government in Washington partially shut down, some options investors are starting to pay more for protection against market turmoil on worries that the current budget stalemate could lead to something more catastrophic – a default.

So far Wall Street has taken the back-and-forth in stride. The S&P 500 index is down 1.3 percent for the week, but still up 18 percent for the year, and numerous strategists have said the eventual resolution of Washington’s legislate battles will provide a buying opportunity.

Sep 30, 2013

CBOE delays start of extended VIX trading until Oct. 21

CHICAGO, Sept 30 (Reuters) – CBOE Holdings Inc said
on Monday it has delayed the launch of expanded trading hours
for futures on the CBOE Volatility Index for a second time,
setting Oct. 21 as the new target start date.

CBOE, operator of the CBOE Futures Exchange and Chicago
Board Options Exchange, said in July that the extension would
begin in late September.

Sep 30, 2013

CBOE to increase VIX trading hours in late October

CHICAGO, Sept 30 (Reuters) – CBOE Holdings Inc said
on Monday that it will expand trading hours for futures on the
CBOE Volatility Index about a month later than expected
in late October.

CBOE, operator of the Chicago Board Options Exchange, is
aiming to increase overseas trading of its lucrative VIX futures
by adding 5 hours and 45 minutes to the trading day in two
stages. The biggest chunk of extra time will come during
European trading hours.

Sep 18, 2013

Options market has eyes on Fed, but more worried about weeks ahead

Sept 18 (Reuters) – Many equity options traders appear less
worried by the U.S. Federal Reserve’s expected announcement on
Wednesday of a reduction in its huge economic stimulus program
than by Washington’s looming debt and budget battles.

Hedges on volatility have been on the rise, but those bets
do not look to be specifically tied to the Fed which has warned
it will wind down its $85 billion-a-month purchases of bonds if
the economy is improving.

    • About Doris

      "Based in Chicago, Ms Frankel writes daily stories and frequent analysis of the fast-moving options market, often breaking news or tidbits about M&A activity and stocks in the news. She previously covered commodities futures markets in New York and in Chicago."
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