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.
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.
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.
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.
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.
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.
NEW YORK, June 12 (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
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
NEW YORK, May 29 (Reuters) – Negotiations between Greece and
its lenders has entered a crucial stage, with dire warnings
daily that the country could run out of cash, but U.S. options
market investors actually seem optimistic about a resolution.
Options activity in Global X FTSE Greece 20 exchange traded
fund, which tracks the Greek equity market, has been
dominated by bullish bets throughout May, a sign investors
expect the ongoing debt standoff to be resolved with relative
NEW YORK (Reuters) – News that chipmaker Broadcom Corp is in talks to be bought by Avago Technologies Ltd spurred a flurry of trades in Broadcom’s short-term calls, and timely buyers of the options could reap huge gains.
Broadcom shares rallied 18 percent to $55.35 and Avago rose more than 8 percent to $141.40 on Wednesday, after the Wall Street Journal reported that the two companies are in talks for a potential deal. A deal could come as early as this week, two people familiar with the talks told Reuters.
NEW YORK (Reuters) – Options traders appear poised for a big move in McDonald’s Corp’s (MCD.N: Quote, Profile, Research, Stock Buzz) shares as the world’s biggest restaurant chain is set to unveil a much-awaited turnaround plan on Monday, and bullish bets have picked up in recent days.
McDonald’s shares have struggled in the last year as the company faces consumers’ changing tastes and growing preference for healthier fare over processed fast food.