Sr. Correspondent, Broker Research, Bangalore, India
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Jul 20, 2015

Options traders grow more bullish on big tech names

NEW YORK (Reuters) – Trading in a key technology fund’s options showed signs of growing bullishness on Monday ahead of earnings reports this week from big names in the sector, including Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz), International Business Machines (IBM.N: Quote, Profile, Research, Stock Buzz) and Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz).

Shares of the Technology Select Sector SPDR exchange traded fund (XLK.P: Quote, Profile, Research, Stock Buzz) were up 29 cents at $43.73 on Monday, just shy of the all-time high of $43.81 set on May 27.

Jul 16, 2015

Weekly VIX options the newest way to trade volatility

NEW YORK, July 16 (Reuters) – Traders will have a new way to
trade short-term volatility next week, when CBOE Holdings Inc
plans to launch weekly expirations for one of its most
heavily traded index options products.

CBOE, the operator of the largest U.S. stock options market,
plans to list weekly expirations for futures and options on the
CBOE Volatility Index, the market’s favored barometer of
volatility. The futures are expected to list on July 23, with
the options to follow soon.

Jul 14, 2015

Micron attracted large options bets ahead of deal news

NEW YORK (Reuters) – Micron Technology Inc attracted large options bets days ahead of reports that China’s state-backed Tsinghua Unigroup Ltd is preparing a $23 billion bid for the U.S. memory chip maker.

Micron’s shares jumped as much as 13 percent to $19.84 on Tuesday, on reports that the Chinese technology conglomerate is prepared to bid $21 per share for Micron. A Micron spokesman said it had not received an offer.

Jul 10, 2015

Financial ETF investors look for boost from bank earnings

NEW YORK, July 10 (Reuters) – With a slew of big banks
reporting results next week, the key financial exchange traded
fund has been drawing strong inflows, and trading in its options
appears bullish.

The Financial Select Sector SPDR Fund, which tracks
the S&P 500 financials sector, is up 1 percent this year
and touched a seven-year high of $25.31, on June 18. The shares
have fallen as much as 5 percent since then.

Jul 8, 2015

Chinese ADRs continue to fall; hedging demand soars

July 8 (Reuters) – The weeks long tumble in the Chinese
stock market is continuing to spill over into China-focused
exchange traded funds and ADRs in the United States, boosting
demand for hedging in the U.S. options market.

Despite Beijing’s best efforts, China’s main stock indexes
have lost about a third of their value since
mid-June, and Chinese shares trading in the United States are
feeling the pinch.

Jul 6, 2015

Options traders exhibit caution ahead of chip earnings

NEW YORK (Reuters) – Hedging activity is rising for U.S. semiconductor stocks as investors fear that sector earnings may be weak, and share prices may fall after a recent flourish in mergers and acquisitions.

Options bets on an exchange-traded fund that tracks the sector have long been bearish, but there was a noticeable rise in hedging activity in June.

Jul 1, 2015

Investors hedging against Greece, but there’s no panic

NEW YORK (Reuters) – Global investors are hedged against a potential exit of Greece from the euro zone ahead of Sunday’s referendum, but they’re not betting on a huge fallout in financial markets even if there is a negative outcome.

Currency, bond, and equity investors have turned defensive, trimming exposure in the euro zone. They’re generally of the mindset, though, that a last-minute deal will be struck and it will be an opportunity to snap up euro zone assets again.

Jun 26, 2015

Consumer Discretionary hedging activity up ahead of earnings

NEW YORK (Reuters) – Investors who have the most to win if Amazon, Disney and other consumer discretionary companies continue to push the sector higher are getting increasingly nervous, judging by their options activity.

Options bets tied to declines in an exchange-traded fund tracking the sector have been unusually popular, even as the S&P 500 consumer discretionary index has logged an 8 percent rise for the year, handily beating the S&P 500 and turning in the second-best performance among the nine S&P 500 sectors.

Jun 18, 2015

Traders bet on Twitter near-term gains as takeover chatter persists

NEW YORK (Reuters) – Dick Costolo’s decision to step down as Twitter Inc’s chief executive last week failed to stem the weeks-long slide in the company’s shares, but options traders appear to be betting on a near-term rebound.

The stock has shed more than a third of its value since Twitter reported first-quarter results in April. It edged up 6 cents to $34.62 on Thursday, after touching a year-low of $33.51 on Tuesday.

Jun 12, 2015

Healthcare investors see no threat from Supreme Court

NEW YORK (Reuters) – Investors are betting that the healthcare sector’s strong run will not be held back for long even if the U.S. Supreme Court rules against the Affordable Care Act.

The court will meet next on Monday, though may not issue a ruling on King v. Burwell, a challenge to President Barack Obama’s signature healthcare reform legislation, until later this month.

    • About Saqib

      "Saqib Ahmed is an options correspondent working with the Markets team in New York. He previously led the Reuters Broker Research team in Bangalore. He joined Reuters in 2009 after graduating from the Asian College of Journalism."
      Joined Reuters:
      English, Hindi, Bengali
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